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.
In 2015 Georgia increased its contribution to the Eastern Europe Energy Efficiency and Environment Partnership Fund. Georgia is both a donor and a beneficiary of the fund.
The EBRD’s latest Georgia strategy was adopted on 14 December 2016
Current EBRD forecast for Georgia’s Real GDP Growth in 2018 4.5%
Current EBRD forecast for Georgia’s Real GDP Growth in 2019 4.5%
The economy of Georgia is accelerating on the back of strong export performance and burgeoning tourism. In the first half of 2017, GDP growth picked up to an estimated 4.5 per cent year-on-year following two years of below-3 per cent growth in 2015-16. The Georgian lari appreciated by approximately 6.7 per cent against the US dollar until mid-October 2017, supported by foreign exchange inflows from increased exports, tourism receipts, tightening of monetary policy, and a recovery in remittances which increased by approximately 19.7 per cent in the first nine months of 2017. Inflation gained pace to 6.2 per cent year-on-year in September 2017 from an average of 2.1 per cent in 2016. The fiscal deficit is planned at around 4.1 per cent of GDP in 2017, reflecting relatively high infrastructure spending financed mostly by borrowing from international financial institutions on favourable terms. A recovery in consumption, investment in infrastructure and strong performance of the hospitality sector are expected to contribute to growth. Weaker-than-expected regional recovery and geopolitical tensions could, however, affect growth on the downside. We forecast Georgia’s economy to grow by 4.5 per cent in both 2017 and 2018.
The Georgian economy gained strong momentum in 2017. Real GDP growth picked up from 2.8 per cent in 2016 to 5.0 per cent in 2017 and was estimated at 4.9 per cent year-on-year in January and February 2018. The favourable regional economic environment helped to boost Georgia’s exports of goods and services, which grew by 22.1 per cent in 2017 in US dollar terms. The continued strong performance of FDI and hospitality and construction sectors stimulated economic growth. FDI increased from 11.1 per cent of GDP in 2016 to 12.3 per cent of GDP in 2017. In 2017, the influx of international tourists to Georgia increased sharply by 27.9 per cent year-on-year. The current account deficit declined from 12.9 per cent of GDP in 2016 to a still high 8.6 per cent of GDP in 2017 on the back of increased export receipts as well as inflows of remittances. Following the exchange rate volatility in 2017, the lari appreciated by 7.4 per cent against the US dollar in the first quarter of 2018. Inflation slowed from an average of 6.0 per cent in 2017 to 2.8 per cent year-on year in March 2018, consistent with the 3 per cent target of the National Bank of Georgia. We forecast Georgia’s economy to grow by 4.5 per cent in 2018 and 2019.