FocusEconomics published economic analysis based on the forecasts from the world’s leading economists. The report included Georgia’s economic outlook.
According to the report, available data indicates that growth lost some pace in the final quarter of 2019, after it picked up to an over one-year high in the previous quarter on a buoyant wholesale and retail trade sector.
Economic activity eased sharply in December, expanding at the softest pace in 11 months amid a decline in construction output, which brought average growth in Q4 well below that of Q3. In addition, although remittance inflows quickened in Q4—with those from Italy, Greece and the U.S. more than offsetting a sharp decline from Russia—increased price pressures amid a depreciating currency likely took a toll on household consumption. On a brighter note, stronger growth in merchandise exports in Q4 might have lent support to overall activity.
Although growth is seen losing stride this year, it should remain solid, buttressed in large part by sturdy household spending. Business sentiment and thus investment may weaken, however, in the run-up to parliamentary elections later in the year. A still-large current account deficit and the sizeable stock of foreign-currency denominated debt also dampen the outlook. FocusEconomics panelists project GDP to grow 4.5% in 2020, which is up 0.1 percentage points last month’s forecast, and 4.5% again in 2021.
To note, FocusEconomics is a leading provider of economic analysis and forecasts for 130 countries in Africa, Asia, Europe and the Americas, as well as price forecasts for 34 key commodities. The company is supported by an extensive global network of analysts.
See all the news
Coronavirus: Boris Johnson moved to intensive care
First-Stage Land Usage Permit for APM Terminals Poti
Carrefour: The product will be on the shelves with the prices same as before
Differences between tobacco and nicotine products
Silknet signed Memorandum of Understanding with Global Communications Company One Web
Reuters: Dutch city tells floating Georgian monastery to cast off
The NBG hiked further as the GEL stays undervalued
World Bank expects slowdown of Georgia's economic growth in Q4 of 2019
Georgia-Estonia Business Forum is Held Today
Nestle Sees $250 Million Boost for Starbucks Products
BM.GE: Giorgi Gakharia has selected a new business ombudsman
Galt & Taggart does not rule out slowdown of economic growth to 4% in 2020
Mamuka Khazaradze: finally, I also found out what we were accused of
Salmonella detected in frozen chicken meat imported from Ukraine
m2: we do not have any plans for Center Point at this stage
Georgia Capital to open 6 new hotels in Georgia under the new brand Amber Group
The CEO of m2 Group is changed - Shota Berekashvili replaces Irakli Burdiladze
The 30 Top Emerging Travel Destinations for 2020
"We hold rather comfortable shares on the market " – Does TBC Bank want to Buy Cartu?
Interview with Ahmed Bin Sulayem - Executive Chairman and CEO of DMCC