Answering a question from BMG, Finance Minister Lasha Khutsishvili said that the government plans to revise its 2021 economic growth forecast.
According to the minister, the government has decided to adjust the economic growth benchmark due to the improved economic parameters.
"Certainly, there is no revision in the direction of reduction. Expectations are better than they were during the year, and both export data and other economic activity data are better than we expected at the beginning of the year. We are talking about adjusting for (GDP growth) growth rather than declining," he said.
The International Monetary Fund (IMF) forecasts, and the Asian Development Bank (ADB), which have reduced their growth forecasts due to slow vaccinations and low tourist flows in Georgia, are entirely different. The IMF cut its forecast from 4.3% to 3.5% in early April, and a few weeks ago, it was followed by the Asian Development Bank, which cut its 2021 growth forecast from 4.5% to 3.5%.
Along with the economic growth parameter, the 2021 budget may be completely adjusted. According to the Minister of Finance, the draft budget adjustment will be developed by the government later, after more information on economic recovery will be available.
In the first quarter of 2021, the Georgian economy shrank by 4.2% compared to the same period in 2020.
The economic growth during the first quarter was as follows:
January - minus 11.5%;
February - minus 5.1%;
March - growth of 4%
The total decline in the first quarter - 4.2%.
February - minus 5.1%;
March - growth of 4%
The total decline in the first quarter - 4.2%.
April economic growth statistics will be published at the end of this month.
