The World Bank published the latest Global Economic Prospects report. Accoridng to the document, Georgia's economy is expected to ease to 4.8% in 2024 reflecting a projected slowdown among trading partners as well as further reduction in money transfer inflows. Monetary policy is expected to be eased to support economic growth while remaining prudent.
Following double-digit growth in 2021 and 2022 growth in Georgia eased in 2023, while remaining robust at 6.5 percent. This is higher than originally forecasted, as a rebound in private consumption coupled with continued recovery in tourism helped offset a decline in money transfer inflows.
Inflation has declined sharply in 2023, driven by lower commodity prices, particularly for food and fuel, along with a strong Georgian lari (GEL). Inflation is expected to end the year below the 3-percent target rate.
According to the document, while uncertainty remains high, risks to this outlook are broadly balanced.
Region Country Forecasts For 2024:
Georgia - 4.8% growth;
Armenia - 4.7% growth;
Azerbaijan - 2.4% growth;
Turkey - 3.1% growth;
Ukraine - 3.2% growth;
Russian Federation - 1.3% growth.
