The European Bank for Reconstruction and Development expects the economic growth in Georgia to moderate to 5% in 2023 and 5.3 percent in 2024.
The Bank’s Regional Economic Prospects forecast, published on Tuesday, said growth prospects remained “clouded by high geopolitical risks”, but a “potential start of the EU accession process in the coming years could invigorate growth-enhancing reforms” for the country.
„Robust double-digit economic growth began to moderate at the beginning of 2023. Construction, trade and financial services were expanding in the first months of 2023, but the manufacturing and real estate sectors contracted”, the EBRD said.
Foreign capital inflows covered the trade deficit, while domestic currency appreciation with timely monetary policy tightening from the central bank contributed to a steady reduction of inflation to 5.3 percent in March 2023”, it said.
