16 Apr 2024 17:09

IMF downgrades Georgia's GDP growth estimate to 5.7% for 2024

TBILISI. April 16 (Interfax) - The International Monetary Fund (IMF) expects Georgia's GDP to grow 5.7% by the end of 2024, the World Economic Outlook published on Tuesday said.

The IMF had previously predicted a 6.2% increase in Georgia's GDP for 2024, after growth of 7% in 2023 and 10.4% in 2022, the fund's previous review last October said.

Meanwhile, the IMF has improved its growth estimate for the Georgian economy in 2025 to 5.2% in its current review (the previous estimate was 4.8%).

The IMF has worsened its inflation forecast. The fund's analysts say that inflation in the country will accelerate to 2.6% in 2024 (the previous forecast was 2.4%) from 0.4% in 2023, and rise to 4.2% in 2025 (the previous forecast was 2.7%).

The IMF estimates that the current account of Georgia's balance of payments will have a deficit of 5.8% of GDP in 2024 (the previous forecast was a deficit of 6.1% of GDP), and a deficit of 5.6% of GDP in 2025 (the previous forecast was a deficit of 5.8% of GDP).

The World Bank downgraded its forecast for Georgia's GDP dynamics in 2024 last week and now expects the Georgian economy to grow 5.2% (versus the previously expected 5.6%).

The Government of Georgia expects the country's GDP to grow 5.2% in 2024, while the National Bank forecasts 5%, and the Asian Development Bank 5%.