09.Nov .2022 17:00

Question Arises - How Sustainable Can 10% Economic Growth Be?! - EBRD

Question Arises - How Sustainable Can 10% Economic Growth Be?! - EBRD
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Catarina Bjorlin Hansen says that in light of the current situation in the region, it is difficult to say at this stage how sustainable economic growth is.

Despite the Russia-Ukraine war, Georgia's real GDP growth has exceeded 10% in the last nine months.

"The 10% economic growth this year is, of course, significant, and I don't think anyone expected it, but the question arises - how sustainable this growth can be. I think that high economic growth will continue in Georgia, although it is difficult to say exact numbers. There are several reasons that drive economic growth. Of course, the influx of people [migration], but there is also a middle corridor that is more active today than it has been before, as well as trade. Georgia is a country with an open economy and there is high growth in the countries around it. We don't know how sustainable this economic growth is because it's hard to say what will happen this year. Our forecast is that there may be 5% growth next year, although it is also possible that unexpected things happen in the region. Therefore, it is difficult to give an exact number," she said.

Catarina also spoke about the logistics sector and said that it was important to develop this sector so that the country could get maximum benefits from the Middle Corridor.

"We see an increased interest in logistics in warehousing, ports and roads. The private sector has a great interest in making investments in this direction. It is important for Georgia to develop logistics quickly in order to get the maximum benefit from the Middle Corridor. It is also important to quickly achieve energy security and invest in renewable energy," she told reporters.