• ABOUT US
    • History
    • Our Team
    • Advertising
    • Subscription
  • CONTACT US
Georgia Today
No Result
View All Result
  • News
  • Politics
  • Business & Economy
  • Social & Society
  • Sports
  • Culture
  • News
  • Politics
  • Business & Economy
  • Social & Society
  • Sports
  • Culture
No Result
View All Result
Georgia Today
No Result
View All Result

ADB: Georgian Economy to Slow to 3.5% Growth in 2022 Due to Ukraine War

by Georgia Today
April 6, 2022
in Business & Economy, Highlights
Reading Time: 2 mins read
ADB: Georgian Economy to Slow to 3.5% Growth in 2022 Due to Ukraine War

The Georgian economic growth is expected to slow to 3.5% in 2022 due to ongoing hostilities in Ukraine, after the “promising double-digit growth” last year, a new report of the Asian Development Bank (ADB) reads.

In Asian Development Outlook (ADO) 2022, the bank’s flagship annual economic publication, ADB projects Georgia’s gross domestic product (GDP) growth to recover slightly to 5% in 2023 due to increased internal and external demand, fueled by faster credit growth, with exports facilitated by structural reforms to trade and connectivity.

“Georgia is going to see the effect of Russia’s invasion of Ukraine in the form of diminished tourism, exports, and remittances,” said ADB Country Director for Georgia Shane Rosenthal. “To help the economy grow, the Georgian government needs to carefully prioritize expenditure after 2 years of expanded pandemic-related spending. It should also invest in urban areas in line with decentralization and invest in social sectors. And to ensure that all can participate in the economy, it is crucial to ensure high-quality education that reaches all parts of the country.”

Inflation is forecast to slow to 7% in 2022 and 4% in 2023. The current account deficit is projected to widen to equal 10% of GDP in 2022 with a forecast rise in oil prices before narrowing to 7.5% in 2023. Exports are projected to increase by 12.1% in 2022 and 14.9% in 2023. As economic sanctions cut growth in the Russian Federation, remittances are forecast to decrease to $1.8 billion in 2022 and $1.7 billion in 2023.

The ADB report highlights the need for Georgia to strengthen subnational public finances that will enable more efficient and equitable provision of services, including complex services that are critical for large population centers, water supply and sanitation systems in secondary cities and towns, and health care, education, and social protection for disadvantaged populations. Fiscal decentralization would improve service delivery and support growth.

“Georgia can benefit significantly by building capacity in municipalities. The success of fiscal decentralization will depend on developing financial management capacity in local governments and training local officials in policy development and implementation skills, such as health and education budgeting and social service delivery,” reads the report.

ADB has supported Georgia since 2007 and is one of the country’s largest multilateral development partners. Sovereign and nonsovereign loans to Georgia total $3.9 billion. ADB’s key development priorities in Georgia include fostering inclusive and sustainable economic growth, reducing poverty, enhancing regional connectivity, and improving public service delivery.

Source: ADB

Tags: ADBGeorgian EconomyUkraine war
ShareShareTweet

Related Posts

Zelensky, Trump agree to cooperate on air defense and joint production
Highlights

Zelensky, Trump agree to cooperate on air defense and joint production

July 4, 2025
Opposition politician Irakli Okruashvili sentenced to 8 months in prison
Highlights

Opposition politician Irakli Okruashvili sentenced to 8 months in prison

July 4, 2025
OSCE PA slams Georgian election conduct, urges return to EU path
Highlights

OSCE PA slams Georgian election conduct, urges return to EU path

July 4, 2025

Recommended

Putin, Xi, and allied leaders mark Russia’s Victory Day at Moscow parade

Putin, Xi, and allied leaders mark Russia’s Victory Day at Moscow parade

2 months ago
Experience Seamless Connectivity with Silknet eSIM in Georgia

Experience Seamless Connectivity with Silknet eSIM in Georgia

1 year ago
Champion Karateka Luka Khvedeliani on the Benefits of Georgian Karate for Georgia’s Youth

Georgia to Celebrate First Europe Day with European Union Candidate Status

1 year ago
Georgian Foreign Minister Holds Farewell Meeting with French Ambassador to Georgia

Georgian Foreign Minister Holds Farewell Meeting with French Ambassador to Georgia

3 years ago
Natia Mezvrishvili on Dealing with 2 Political Giants

Natia Mezvrishvili on Dealing with 2 Political Giants

3 years ago
Giorgi Gakharia: We were Told We Were Capable of Nothing – It’s All a Lie and Ukraine is a Great Example of This

Giorgi Gakharia: We were Told We Were Capable of Nothing – It’s All a Lie and Ukraine is a Great Example of This

3 years ago
GT Interview with Giorgi Badridze

GT Interview with Giorgi Badridze

3 years ago
Russo-Ukrainian War and Georgia – Analysis from security expert Kakha Kemoklidze

Russo-Ukrainian War and Georgia – Analysis from security expert Kakha Kemoklidze

3 years ago

Navigation

  • News
  • Politics
  • Business & Economy
  • Social & Society
  • Sports
  • Culture
  • International
  • Where.ge
  • Newspaper
  • Magazine
  • GEO
  • OP-ED
  • About Us
    • History
    • Our Team
    • Advertising
    • Subscription
  • Contact

Highlights

Speaker: OSCE SG’s statement ends Brussels’ attempts to undermine Georgian democracy

OSCE PA urges Syria to withdraw recognition of “independence” of Georgia’s Abkhazia, Tskhinvali regions

OP-ED: Good Things Are Happening in Our Neighborhood. On Azerbaijan–Russia–Armenia

Israel-Iran Latest: Tensions Escalate as Iran Suspends IAEA Cooperation Following US and Israeli Strikes

Ukraine Latest: US Halts Aid as Russia Escalates Attacks, North Korea Deepens Involvement

OSCE PA: October 26 elections marred by irregularities – Calls for dialogue, release of political prisoners, and new vote

Trending

Experience Seamless Connectivity with Silknet eSIM in Georgia
Business & Economy

Experience Seamless Connectivity with Silknet eSIM in Georgia

by Georgia Today
June 26, 2024

Why Silknet's eSIM could be your top choice in Georgia  Since its introduction, eSIM technology has become...

Photo by the author

Virtuosity and Versatility: Marc-André Hamelin Opens Tbilisi Piano Festival 2024

May 30, 2024
  • Where.ge
  • Newspaper
  • GEO
  • Magazine
  • Old Website

2000-2024 © Georgia Today

No Result
View All Result
  • News
  • Politics
  • Business & Economy
  • Social & Society
  • Sports
  • Culture
  • International
  • Where.ge
  • Newspaper
  • Magazine
  • GEO
  • OP-ED
  • About Us
    • History
    • Our Team
    • Advertising
    • Subscription
  • Contact

2000-2024 © Georgia Today