EBRD: Georgia’s economy to grow 3.9% in 2017 and 4.2% in 2018

Georgia’s economy will experience 3.9 percent growth in 2017, forecasts the European Bank for Reconstruction and Development (EBRD).

In its report, "Regional Economic Prospects (May 2017)”, the EBRD kept unchanged this year’s economic growth forecast for Georgia and reassured it will grow by 3.9 percent, as was already projected in November 2016.

Furthermore, the EBRD said Georgia’s economy will hit 4.2 percent growth in 2018.

Economic growth is expected to pick up across the EBRD regions this year and next, supported by higher oil prices and Russia’s recovery from recession, said the Regional Economic Prospects report.

As for Georgia, the report said, real gross domestic product (GDP) growth slowed slightly to 2.7 percent in 2016 compared to 2.9 percent in 2015, due partly to the weak external environment, but the economy picked up in the second half of the year, with a rebound in exports and remittances flows.

“GDP growth is projected to improve to 3.9 percent in 2017 and further to 4.2 percent in 2018, supported by a recovery in consumption and strong domestic and foreign direct investment in infrastructure and other sectors, as well as strong tourism inflows,” said EBRD.

The Deep and Comprehensive Free Trade Area (DCFTA) and now the EU visa free regime, granted in March 2017, are contributing to improved investor confidence and providing better access to the EU market, said the report. (agenda.ge)