"Georgia's economy is expected to grow by 3.5% in 2021 at the expense of easing restrictions set due to the pandemic caused by COVID-19 and reviving domestic demand," the new report of the Asian Development Bank (ADB) reveals. According to the Asian Development Outlook, the ADB forecasts 6% GDP growth in Georgia in 2022. Bank's main annual economic report shows that the full opening of the economy and the expected recovery of tourism will stimulate travel and trade.
ADB predicts a slowdown in inflation to 5.0% in Georgia in 2021 and to 3.5% in 2022. The current account deficit will be reduced to 10 percent of GDP in 2021, and 7 percent in 2022 as the commodity balance and tourism gradually increase.
As a result of measures taken by the government to ensure the continuous supply of food, ADB expects 3.2% growth in agriculture in 2021 and 3.9% in 2022. Investments will slow in 2021 as a private investment will decline by 7.5%, although growth is expected next year.
According to the report, exports to Georgia will increase by 7.1% in 2021 and 20.4% in 2022. Imports will increase moderately, by 3.6% in 2021 and by 8.9% in 2022.