Galt & Taggart, one of the leadig investment banks in Georgia forecasts average annual inflation in the country at 3.1% for the entire year and end-2023 inflation at 1.0%. "We expect disinflation to continue," the researchers state in their recent publication - Monthly economic review - reduced inflation.
"In Apr-23, headline CPI receded to 2.7% y/y, marking the 7th consecutive monthly decline. This decrease in inflation reflected a decline in imported inflation, driven by falling global commodity prices and international shipping costs along with GEL appreciation. While there is a slowdown in domestic inflation, it remained high at 10.6% y/y in April. We expect disinflation to continue and forecast average annual inflation at 3.1% for the entire year and end-2023 inflation at 1.0%," the report reads.
According to the monthly economic review, the economy of Georgia is expected to grow by 5.8% in 2023.
"Economy continues strong growth, with real GDP up 7.5% in Apr-23, after 7.3% growth in previous month. Overall, in 4M23, growth came in at 7.3%. In April, construction, financial, trade, ICT, transportation and storage sectors drove the growth. Meanwhile, manufacturing, and real estate sectors contracted. We forecast Georgia’s economy to grow by 5.8% in 2023," the publication says.
