The European Bank for Reconstruction and Development (EBRD) believes that rising political tensions in Georgia are one of the risk factors for the country's economic growth.
In addition to political polarization, the EBRD cites low levels of vaccination and high inflation in the country as risk factors.
"Inflation pressure in Georgia has been growing since the beginning of this year. The annual inflation rate reached 12.3% in September, which was due to the increased cost of fuel imports, as well as globally rising food prices and exchange rate depreciation. The National Bank of Georgia has tripled its refinancing rate by 2021, up from 10% in August 2021. Given the strong economic growth in the first half of the year, 7.5% economic growth is expected in Georgia this year. The main risk for growth is the low rate of vaccination, as well as the spread of pandemics and increased political tensions," the EBRD said.
