International rating agency S&P Global lowers Georgia's economic growth forecast for 2022. The organization expects that the Georgian economy will grow by only 2.5% in 2022 due to Russia’s invasion of Ukraine. The agency predicted economic growth of 5.5% in Georgia before the war in Ukraine.
The international agency also revised its inflation forecast in Georgia. Prior to the war, the organization predicted inflation of 6.5% in 2022. According to the updated forecast, the organization predicts inflation to average 7% this year.
The World Bank's assessment is different, as Sebastian Molineus, the World Bank's Regional Director for the Caucasus, said on May 31, Georgia's economic growth expectations would be improved. Shortly after the start of the war in Ukraine, the World Bank cut growth expectations from 5.5% to 2.5%. However, the bank returns this forecast to 5.5%.
The expectations of the Georgian government, which expects 6% growth in the country this year, remain unchanged. According to the macroeconomic parameters published today, the size of Georgia's GDP should reach 65.8 billion GEL this year.
