Page 4 - GEORptSep22

1.0 Executive summary
The Georgian economy grew by 7.2% in Q2 and 10.5% in the first half of 2022 y/y, according to the latest National Statistics Office of Georgia data. Deputy Minister of Finance Mikheil Dundua said that Georgia achieved double-digit economic growth in the conditions of a global crisis.
The World Bank in its June issue of ‘Global Economic Prospects’ has revised its GDP growth forecast for Georgia for 2022 upwards from 2.5% to 5.5%. The Georgian economy has shown resilience to the economic shock induced by the Russian invasion of Ukraine so far, driven by the strength of the services sector, particularly in tourism, with a strong recovery in the year through July.
The International Monetary Fund (IMF) previously said that Georgia’s spillovers from the war and sanctions are expected to lower Georgia’s growth to around 3% in 2022, raise inflation, and widen the current account deficit. The outlook is subject to a higher-than-usual level of uncertainty. Georgia’s economy has proven resilient in the past, and with the support of policies under the authorities’ programme. IMF expects growth to pick up in 2023 and other key indicators to strengthen as well.
The Georgian Parliament will create five working groups to handle the conditions underlined by the European Union for granting the country membership candidate status, announced Parliament's Legal Affairs Committee on August 4.
Georgian Prime Minister Irakli Garibashvili tried to put a brave face on Georgia's failure to secure EU candidate status from Brussels, saying that the country would work towards being given the status. Georgia was not granted candidate status at the European Council at the June 23-24 summit - while allowing Ukraine and Moldova to go forward - because of the country’s democratic deficits. The European Commission said Georgia must first fulfill a number of conditions only after which can it receive candidate status. Since the country is struggling with the deadline, a review has been postponed. Protesters have been demanding the resignation of Prime Minister Irakli Gharibashvili for months.
In trade and transport related news, the Georgian government will ban the export of wheat and barley for a year starting from July 4, 2022. The reason is to ensure food security on the domestic market given the Russian invasion of Ukraine, according to Minister of Environment and Agriculture Otar Shamugia.
The Trans-Caspian International Transport Route (TITR) is gaining importance as trade through its member states is growing amid the necessity for more trade route volume that bypasses heavily sanctioned Russia.
Prime Minister Irakli Garibashvili said the profit of Georgian Railways had hit a "record high" of GEL161mn ($59 mn) in the first half of the year. During the August 15 cabinet meeting, the prime minister announced that the increased freight traffic through Georgia had increased revenues for the company.
4 GEORGIA Country Report September 2022 www.intellinews.com