Financial institutions

2022 growth should be higher than the forecasts of financial institutions

Georgia’s economic growth in 2022 is expected to exceed forecasts published by financial institutions, Economy Minister Levan Davitashvili said Friday during a plenary session of the Georgian parliament.

Davitashvili briefed MPs on current trends in the country’s economy, government visions and main directions of economic policy.

We expect the expected economic growth to be achieved. The Georgian government has repeatedly shown that we have a successful track record in dealing with shocks. We have been through a very difficult pandemic period; however, we have experienced one of the highest economic growths in the [South Caucasus] region,” the minister said.

Davitashvili pointed out that in 2021, Georgia’s economy grew by more than 10%, reaching “double-digit” growth, while the figure in the first quarter of 2022 reached 14.4%.

He also noted that the government assessed the potential impact of the war in Ukraine “from the start” of the war.

Assuming different shocks, we revised our forecast for economic growth and assumed that it could have been reduced by three percentage points, i.e. instead of the projected six percent, growth could have been fixed at three or 3.5 per cent. This forecast has been shared by our international partners, with international financial institutions fully agreeing with our estimates,” Davitashvili noted.

The minister explained that this was not a “satisfactory scenario” and that the government was “mobilized” to compensate for the potential loss of growth figures and to implement targeted policies to support the economy.