- Moderate recovery of GDP by 3.5% in 2021, after decline by 6.2% in 2020
- Outlook for 2021 subdued; reasons: Lockdown in Q1-2021 and weak tourism
- Current account deficit above 10% of GDP in 2020/2021 due to lack of tourism revenues
- Lari depreciation by 14% in 2020, but relatively stable around GEL/USD 3.30 in 2021
- Rising inflation due to lari devaluation (pass-through) and higher commodity prices.
- NBG response: increase policy rate by 1.5 percentage points in 2021; current: 9.5
- Remittances on positive trend since second half of 2020; stabilising factor
- Government continues fiscal support in the crisis (2.3% of GDP in 2021)
- Successful placement of a USD 500 million Eurobond (maturity: 5 yrs, yield: 2.875%)
- IMF programme successfully completed, new programme still under discussion
- Blueberries. Emerging boom, but strong regional focus on Russia
- Electricity. Import dependence and Enguri renovation.
- Corona. Case numbers and vaccinations