Page 15 - GEORptMay20

Facility
Georgia clocks growth of 3.7% y/y in Jan-Feb
institution said in ​a press release​.
The project is part of the World Bank’s broader support for Georgia and it is the first in a series of three lending operations to be rolled out over the coming three months.
The World Bank is also collaborating with the Asian Infrastructure Investment Bank to provide an additional $100mn under a joint co-finance arrangement.
“Through our rapid support we are helping save lives and protect the livelihoods of those impacted by the pandemic during this challenging time. We estimate that the total World Bank Group financing package for Georgia COVID-19 response will be approximately $200mn in new financing, in addition to the approximately $300mn funds in our pipeline for 2020-2021 for projects in support of broader development needs, such as digital connectivity and infrastructure”, said Sebastian Molineus, World Bank regional director for the South Caucasus.
The second upcoming operation will help the government cover the unanticipated financing gap and ensure Georgia’s progress in implementing reforms in areas critical for inclusive economic growth. The third operation is intended to support the jobs agenda as well as micro, small and medium sized enterprises (MSMEs) that have been affected by the pandemic.
In addition the World Bank has said it will support digital connectivity and infrastructure through the upcoming “Log-In Georgia” project. It will back the government’s plan to connect more than 700 villages to the internet via fibre-optic cable networks. This will boost remote learning and overall connectivity essential for livelihoods hampered by pandemic-required social distancing, the World Bank said.
Georgia’s GDP expanded 3.7% y/y in the first two months of 2020, decelerating from the 5.2% growth clocked up across 2019, according to preliminary data.
In February alone, GDP grew by 2.2%. A figure of 5.1% was recorded in January.
The fastest growth in February was registered in real estate, trade, repairs of cars and motorbikes, communications and food delivery services. There were declines in the processing industry, construction and transport.
15​ GEORGIA Country Report ​May 2020 ​​www.intellinews.com