After a double-digit economic growth, in 2022 the Georgian economy will grow by 3.5%. The rate of inflation will decrease, though only to 7%. The report is published by the Asian Development Bank. The updated forecast rate is 3% lower than the one previous 7 months ago. The ADB expected the economy to grow by 6.5% in September. The budget approved in December is based on the assumption of 6% GDP growth. The deterioration of the forecast is connected with Russia’s invasion of Ukraine.
According to the ADB report, the war will reduce tourism revenues, investments, remittances and exports. The current account deficit can even increase up to 10%.
The Asian Development Bank is not the only one to cut Georgia's economic growth forecast, the IMF cut it to 3% on April 1, and the European Bank for Reconstruction and Development (EBRD) - to 2%. The budget has not been formally adjusted, although the Deputy Finance Minister of Georgia has spoken of a $ 1 billion loss.
As of April 6, the March data shows only inflation and it is much higher (11.8%) than expected, the statistics of tourism, remittances and foreign trade will be published in stages by the end of the month. The preliminary forecast is unreliable.
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