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Based on the latest data, we expect annual growth in 2016 to be 3.3%. This is just 0.1% below the recently released annual economic growth projections of the International Monetary Fund (IMF) and 0.2% lower than the annual forecast of the National Bank of Georgia.
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The IMF’s projection for real GDP growth in Georgia in 2017 was revised upward to 5.2% from the predicted 4.5% in April. This is the highest projected regional growth rate and is certainly very encouraging. Despite this, Georgia remains a small economy, where GDP growth has always been highly correlated to the economic performance of its large trading partners.
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Along with a recent interview by a Japanese journalist on regional economics and the attendance of a Japanese student in the Class of 2018, ISET is broadening its Japanese experience with a visit to Tokyo.
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Based on the latest data, the updated annual GDP growth projection is 3.4%. It is noteworthy that the model starts to provide the most accurate annual estimate in September when seven months of data is available on core explanatory variables.
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According to Geostat’s rapid estimates, real GDP grew by 2.1% in July 2016, while the growth rate for Q2 stood at 2.3% year over year (YoY). The estimated second quarter growth was thus 1.6 percentage points lower than ISET-PI’s GDP forecast for the quarter.