Economic Monitor Issue 13 | January 2021

Overview

  • Strong drop in GDP (-5.1%) in 2020
  • Before the crisis, GDP 2020 was forecast at 4.3%; economy hit hard by pandemic
  • Main drivers: lower exports of services and decline in investments
  • Key sector: tourism; drop in international visitors by 80%
  • Recovery of GDP by 4.3% forecast for 2021, lower rate than before the crisis
  • Lari depreciated by 13% in 2020 against backdrop of uncertainty and lower exports
  • NBG reacted by sizeable FX interventions; policy rate cut by 1 pp to 8%
  • Remittances increased by 8.8% yoy, much stronger than initially anticipated
  • Strong anticyclical response by the government to the crisis
  • Twin deficits: current account deficit at 9.8%, public deficit of 9.0% of GDP
  • Augmented IMF programme crucial for overcoming the crisis

Topics

  • Insolvency. Finally: a modern insolvency legislation for Georgia
  • COVID-19. Development of cases, domestic measures, economic support
Download Economic Monitor 13/2021