October 2016 Macro Review | Georgia’s growth expectations marred by concerns about negative spillovers from regional economies
20 October 2016

On 4 October 2016, the IMF’s flagship World Economic Outlook (WEO) publication updated its projections of the main global macroeconomic indicators. According to the WEO,

“Global growth is projected to slow to 3.1 percent in 2016 before recovering to 3.4 percent in 2017. The forecast, revised down by 0.1 percentage point for 2016 and 2017 relative to April, reflects a more subdued outlook for advanced economies following the June U.K. vote in favor of leaving the European Union (Brexit) and weaker-than-expected growth in the United States. These developments have put further downward pressure on global interest rates, as monetary policy is now expected to remain accommodative for longer”.

In contrast, Georgia’s real GDP growth forecast for 2016 was revised upward to 3.4% from the projected 2.5% in April. For Georgia’s neighboring countries, the IMF predictions were as follows: Turkey 3.3%, Armenia 3.2%, Azerbaijan -2.4%, and Russia -0.8%.