National Bank of Georgia revises its forecast for economic growth for 2013

The National Bank of Georgia has reduced its forecast for economic growth in 2013 to 4%. The main role in economic growth will belong to agricultural and the processing industry. National Bank experts believe that the economic growth rate in 2013-2014 depends on increasing the confidence of the business sector and the efficiency of investment projects announced by the government.

The bank believes that the low economic growth is due to lower consumer confidence and the weakening of activity in the financial and business sectors. Despite the high liquidity of the banking sector, lending activity remains at low levels. The reduced business activity remains a negative risk for economic growth and the economy will reach six percent growth by the second quarter of the next year. This figure is forecast to be at seven percent by the end of 2014. Agriculture, the processing industry, tourism and trade will mainly contribute to economic growth in future. (Trend)