02.Apr .2022 12:00

IMF: Georgia’s economic growth to be lowered to around 3%

IMF: Georgia’s economic growth to be lowered to around 3%
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Georgia’s economy enjoyed a strong recovery from the COVID-19 pandemic, reaching 10.4% growth last year. However the prosperity was short-lived. Russia’s invasion of Ukraine on Feb.24 and the following sanctions has darkened the global economic outlook in the span of just few days. Similar to the majority of countries worldwide, economic growth will be reduced in Georgia as well, which according to the International Monetary Fund (IMF) will be lowered to around 3% in 2022.

“Georgia’s economy was enjoying a strong recovery from the COVID-19 pandemic—growth reached 10.4 percent in 2021—before the Russian invasion of Ukraine. Spillovers from the war and sanctions are expected to lower Georgia’s growth to around 3 percent in 2022, raise inflation, and widen the current account deficit.,” says James John, IMF team leader adding “the outlook is subject to a higher-than-usual level of uncertainty.”

“Georgia’s economy has proven resilient in the past, and with the support of policies under the authorities’ program, we expect growth to pick up in 2023 and other key indicators to strengthen as well,” John said.