TBC Capital Improves Georgia’s Economic Growth Prospects
BAKU, Azerbaijan, April 18. Against the backdrop of the increase seen in several economic sectors of Georgia, the country’s GDP growth in 2022 is estimated at 5.5%, reports Trend via a weekly macroeconomic review of TBC Capital.
According to the report, the positive outlook is supported by the substantial increase in the tourism sector, both in terms of arrivals and revenues, as well as trade turnover.
However, TBC Capital noted that it will be difficult to achieve strong export growth, nevertheless, 20% year-on-year growth is highly expected. In addition, the increase in transportation services is considered due to the redirection of goods, with additional revenue of $80 million.
“On imports, rising prices are also a driver, but to a lesser extent, while real growth is expected to be slightly positive thanks to continued strong economic activity. This appears to be the case even when imports are adjusted for a likely decline in investment demand due to higher uncertainties. Outside of the investment component, credit growth is expected to be still strong,” TBC Capital said.
Meanwhile, remittances to Georgia have shown resilience, so the bank doesn’t see a big drop in the long run.
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