Page 14 - GEORptMar20

World Bank lowers 2020 Georgia growth forecast by 0.5pp to 4.3%
“There was significant support for fiscal growth in 2019. The size of government spending on GDP in 2020 is almost unchanged and it will continue to support economic growth. [...] Fiscal acceleration will occur during the elections and this will support economic growth. Under the baseline scenario, growth of 4.7% is achievable,” Kavtaradze said.
The World Bank now expects Georgia to record growth of 4.3% in 2020, it said in the​ ​latest edition of its Global Economic Prospects report​ issued on January 9.
In the previous edition of the report, issued in June last year, it anticipated a GDP expansion of 4.8%.
The institution estimated that in 2019 growth in Georgia stood at 5.2%, an increase of 0.6 percentage points on what it anticipated six months ago. Georgia has been tightening monetary policy to rein in inflation, noted the report, adding that growth last year strengthened despite the flight ban introduced by Russia in a political row.
4.0​ Real Economy 4.1​ Industrial production
Industrial production climbs 16.9% y/y in 3Q19
Georgia’s industrial production climbed 16.9% y/y in the third quarter of 2019, accelerating from a 2.9% y/y and 5.4% y/y in the first and second quarter of 2019, respectively,​ according to the National Statistics Office of Georgia. This was the strongest growth in industrial production since the fourth quarter of 2017.
Production expanded at a faster pace for manufacturing ( 20.5% in 3Q19 from 3.1% in 2Q19), while mining and quarrying production rebounded sharply (8.3% in 3Q from -3.5% in 2Q). Meanwhile, output rose at a slower pace for electricity, gas, steam and air conditioning supply (0.7% in 3Q from 2.7% in 2Q) and water supply sewerage, waste management and remediation activities (10.9% in 3Q from 13.9% in 2Q).
14​ GEORGIA Country Report​ March 2020 ​​www.intellinews.com