In Georgia we focus on:
Supporting private sector competitiveness through innovation, enhanced value added and convergence with Deep and Comprehensive Free Trade Area (DCFTA) standards and obligations. We will continue supporting SMEs and the local private sector via the well-developed local banking sector with a focus on high-potential areas such as agriculture, hospitality and innovation where we plan to deploy support in workforce training skills focused on regional inclusion, youth and gender.
Deepening financial intermediation and developing local currency and capital markets to enable the private sector to have better access to finance.
Expanding markets through inter-regional connectivity, expanding Georgia’s potential as a regional link through further modernisation of the country’s infrastructure. The EBRD will explore the financing investments under private-public partnership frameworks that will enable Georgia to take advantage of its geographic position between the South Caucasus, Central Asia and Europe.
Renewable energy, resource efficiency and climate change adaptation to improve competitiveness and resilience of the economy. We will continue supporting the creation of renewable generation capacity in hydropower, wind and possibly solar, as well as building transmission lines to connect with regional markets. A special Energy Efficiency Action Plan will be developed to tackle excessive energy consumption.
As well as being a country where the EBRD works, Georgia is also an EBRD donor. In 2014 Georgia signed a €1 million contribution agreement to the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund. And the second contribution agreement for €2 million was signed in 2020.
The EBRD’s latest Georgia strategy was adopted on 8 December 2021
Current EBRD forecast for Georgia’s Real GDP Growth in 2023 5.0%
Current EBRD forecast for Georgia’s Real GDP Growth in 2024 5.3%
Robust double-digit economic growth observed for the past two years began to moderate at the beginning of 2023. Construction, trade and financial services expanded in the first months of 2023, but the manufacturing and real estate sectors were contracting. The post-pandemic rebound of tourism, however, has continued in 2023. In 2022, the Georgian economy benefitted from huge capital inflows and high demand for services boosted by significant inflows of high- skilled people from Russia, including many of Georgian origin. Income from foreign travel surpassed the pre-pandemic level in 2022 and the net inflow of money transfers almost doubled. Large foreign capital inflows covered the trade deficit. Domestic currency appreciation, together with timely monetary policy tightening by the central bank, contributed to a steady reduction of annual inflation, to 5.3 per cent in March 2023. Economic growth is likely to moderate to 5.0 per cent in 2023 and 5.3 per cent in 2024. Growth prospects are, however, clouded by the high geopolitical risks. On the other hand, a potential start of the EU accession process in the coming years could invigorate growth-enhancing reforms.