ADB Estimates Georgia’s Economic Growth at 4.5% in 2021

According to the Asian Development Bank (ADB) report released on September 15, Georgia is forecast to return to the economic growth of 4.5% in 2021 from expected recoveries in tourism, private consumption, investment, and net exports, following an estimated 5% decline in 2020 caused by the COVID-19 pandemic.

“The possibility of a prolonged disruption of tourism and external demand and supply chains continues to weigh on the growth forecast, as does the prospect of a slowdown in government processes following parliamentary elections in October,” highlights ADB’s flagship annual publication, Asian Development Outlook.

The report also estimates a sharp increase in Georgia’s current account deficit in 2020 and 2021 to 11% and 8.0%, respectively, after the country’s deficit nearly doubled in the first quarter of 2020 due to a 29.8% decline in receipts from tourism which cut exports of services by 15.6%. 

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