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partnerships, promote trade integration and strengthen public procurement.
Inflation, which has plagued Georgia in recent years, is projected to come down to 3.5% in 2018, from over 6% in 2016-2017, and monetary policy is expected to ease in order to support growth. Fiscal policy will remain tight in order to contain the budget deficit at 1% of GDP in both 2018 and 2019, particularly as tax revenues as a percentage of GDP are expected to decline due to a recent corporate tax reform.
4.0 Real Economy 4.1 Industrial production
Industrial production rises 20.6% y/y in 4Q17
Georgia’s industrial production increased 20.6% in the fourth quarter of 2017, easing from a 21.8% growth in the previous period, according to the National Statistics Office of Georgia.
Production increased at a slower pace for both water supply sewerage, waste management and remediation activities (4% in 4Q17 from 12.4% in 3Q17) and electricity, gas, steam and air conditioning supply (9.8% in 4Q17 from 17.6% in 3Q17). Meanwhile, production increased faster for both mining and quarrying (29.1% in 4Q17 from 10.2 in 3Q) and manufacturing (24.8% from 24.3%).
Industrial production y/y in Georgia averaged 13.2% from 2000 to 2017.
15 GEORGIA Country Report May 2018 www.intellinews.com