Page 13 - bne IntelliNews Georgia country report October 2017

Georgia’s GDP growth to exceed 4% projection, says economy minister
Georgia's economy has a good chance of growing above the government's 4% projection this year thanks to government spending on infrastructure projects and private sector developments, Economy Minister Giorgi Gakharia told Reuters in an interview on June 28.
The small and trade-reliant economy in the South Caucasus has seen a slowdown in economic growth in recent years, following the similar trend experienced by its main trade partners - neighbours Turkey, Azerbaijan, and to a smaller extent, Armenia and Russia. However, following GDP growth of 2.9% in 2015 and 2.2% in 2016, the Georgian economy is expected to grow by 3.5% in 2017, according to projections by international financial institutions.
The government's projection is higher at 4%, but Gakharia says that even that forecast will be exceeded, seeing how GDP grew by 4.2% y/y in the first four months of the year.
"The private sector is developing well and the government's capital spending will increase," he said. Furthermore, foreign direct investment (FDI) is expected to pick up from $1.64bn in 2016.
Attracting FDI is one of Tbilisi's main priorities at the moment, the minister added, particularly since investments from oil major BP into a gas pipeline that crosses Georgia on its way from Azerbaijan to Europe are starting to wane as the project nears completion.
However, "unfavourable market conditions" have prompted Georgian authorities to postpone their earlier decision to sell stakes in state-owned Georgia Oil and Gas Corporation (GOGC) and Georgian Railways, Gakharia concluded.
Georgian Railways was mulling an initial public offering in London in 2012, but has postponed the float due to market volatility. Tbilisi is now considering selling a 25% stake in GOGC.
13 GEORGIA Country Report October 2017 www.intellinews.com