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EBRD lowered its forecast for economic growth in Georgia

Tuesday, May 14
The European Bank for Reconstruction and Development (EBRD) lowered its forecast for economic growth in Georgia in 2013 by two percentage points, and said that "prospects have worsened" in comparison with the forecast of Georgia made by the bank in January.

According to Georgian TV, the bank predicts growth of three percent in Georgia's economy in 2013 instead of the five percent that announced in January of this year. According to official forecasts of the government of Georgia, this year it will rise six percent. However, as President of the National Bank of Georgia recently stated, the data can be reviewed and reduced.

In its latest report on the future of the regional economy, which covers 34 countries in Central and Eastern Europe, the former Soviet Union and North Africa, the EBRD for the region, where the bank operates, the overall GDP growth forecast lowered to 2.2 percent instead of the 3.1 percent forecasted in January.

In connection with Georgia, the report suggests that the economic growth of the country by the end of 2012 has slowed, "presumably due to the reduction of investment and uncertainty associated with the post-election political transitions."

According to the preliminary data of the Statistics Service of Georgia, economic growth in the first quarter was 1.7 percent compared to the corresponding period of the previous year by 6.7 percent.