The EBRD confirmed the forecast of a 5 drop in Georgia's GDP in 2020%

2020/11/78512-1605601319.jpg
Read: 892     11:00     17 Ноябрь 2020    

The European Bank for reconstruction and development (EBRD) confirmed its October forecast of the macroeconomic consequences of the COVID-19 pandemic for Georgia.

"We forecast a 5% reduction in Georgia's GDP in 2020, followed by a resumption of growth of 3.5% in 2021," the EBRD said in its transition report for 2020-2021, which assesses the country's economic situation under COVID-19.

At the same time, it is noted that the impact of the external pandemic shock was widespread, it hit the export of goods, tourism and money transfers, which are important components of the Georgian economy. "The strict measures introduced in March 2020 to contain the spread of the virus have hit domestic demand and many small service providers," the EBRD States.

According to EBRD analysts, Georgia's economic recovery largely depends on the recovery of tourism, the main driver of the country's sustained economic growth in recent years, which has become a key vulnerability during the pandemic. "The speed of recovery and the overall state of the Georgian economy in 2021 will be determined by the development of the hotel business and the influx of foreign guests, which is currently extremely uncertain," the report says.

With regard to the key priorities for 2021, the Bank considers that the authorities of the country should strengthen the economy's resilience through diversification: to support the export of services in the field of information technology and to benefit from expected changes in global supply after the pandemic COVID-19.

The pandemic COVID-19 government of Georgia in 2020 is expecting GDP falling by 4.9%. The country's draft budget for 2021 initially set economic growth at 5%, but in agreement with the International monetary Fund (IMF), it is planned to reduce this figure to 4.3%.

The world Bank (WB) forecasts a 6% decline in Georgia's GDP in 2020, 4% growth in 2021, the Asian development Bank (ADB) expects a 5% decline in the country's economy this year, and 4.5% growth next year.

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The EBRD confirmed the forecast of a 5 drop in Georgia's GDP in 2020%

2020/11/78512-1605601319.jpg
Read: 893     11:00     17 Ноябрь 2020    

The European Bank for reconstruction and development (EBRD) confirmed its October forecast of the macroeconomic consequences of the COVID-19 pandemic for Georgia.

"We forecast a 5% reduction in Georgia's GDP in 2020, followed by a resumption of growth of 3.5% in 2021," the EBRD said in its transition report for 2020-2021, which assesses the country's economic situation under COVID-19.

At the same time, it is noted that the impact of the external pandemic shock was widespread, it hit the export of goods, tourism and money transfers, which are important components of the Georgian economy. "The strict measures introduced in March 2020 to contain the spread of the virus have hit domestic demand and many small service providers," the EBRD States.

According to EBRD analysts, Georgia's economic recovery largely depends on the recovery of tourism, the main driver of the country's sustained economic growth in recent years, which has become a key vulnerability during the pandemic. "The speed of recovery and the overall state of the Georgian economy in 2021 will be determined by the development of the hotel business and the influx of foreign guests, which is currently extremely uncertain," the report says.

With regard to the key priorities for 2021, the Bank considers that the authorities of the country should strengthen the economy's resilience through diversification: to support the export of services in the field of information technology and to benefit from expected changes in global supply after the pandemic COVID-19.

The pandemic COVID-19 government of Georgia in 2020 is expecting GDP falling by 4.9%. The country's draft budget for 2021 initially set economic growth at 5%, but in agreement with the International monetary Fund (IMF), it is planned to reduce this figure to 4.3%.

The world Bank (WB) forecasts a 6% decline in Georgia's GDP in 2020, 4% growth in 2021, the Asian development Bank (ADB) expects a 5% decline in the country's economy this year, and 4.5% growth next year.

apsny.ge





Tags: