The ISET research institute reports, that Georgia’s economic growth rate will slow down this year.
As the organization’s leading economist told BMG, the deterioration of the ISET business confidence index also indicates that economic activity will slow down this year.
According to Giorgi Papava, against the backdrop of instability and political tension in the country, the economic growth rate is expected to be within 3-4% this year.
“The business confidence index has deteriorated for both large and small businesses. The share of businesses that plan to expand has decreased, and on the contrary, the share of businesses that expect a slowdown in business activity has increased.
We see that business activity has already slowed down and there are many questions about what the prospects are in the short term. This index also indicates that we should expect a decline in economic activity, that is, the rate of economic growth, which was at a high level in 2024, will slow down significantly.
The way out of the current political situation is not yet visible, therefore, economic growth will not be high. If we talk about the base scenario, economic growth will probably be within 3-4% this year. If it were higher than that, the political situation that is currently in the country should be relieved very soon, which is likely to be low,” said Giorgi Papava.
