(MENAFN- Trend News Agency ) BAKU, Azerbaijan, Sept. 30

Tamilla Mammadova – Trend:

Georgia's TBC Capital published the country's updated macro-sectoral overview, Trend reports via the TBC Capital.

According to the report, contribution of remittances, credit, exports and fiscal stimulus to growth were all sizable in Georgia. The effect of tourism inflows and FDI on GDP were minor.

"Low share of tourism inflows was primarily caused by the unfavorable dynamics of the first quarter. Real GDP growth compared to 2019 was positive as well and amounted to 4.8 percent," said the report.

The report reads, that due to the surging COVID-19 cases in Georgia tourism recovery has slowed down. Main contributor to the slowdown was the fall of inflows from Israel In August, the largest share of tourism inflows came from the EU. September preliminary data indicates that compared to 2019 the growth will be similar to the previous month.

"Inflation is high according to both consumer as well as industrial products In the later period industrial price growth has stabilized, which in tandem with other factors indicates normalization of consumer price growth," said TBC Capital.

Out of 305 products in the consumer basket prices have increased for 87.9 percent, the reasons for this growth being:

• Lari depreciation mainly against USD and euro
• Commodity price hikes on international markets
• Elimination of subsidies on flour Increasing demand

Inflation forecast is based on the following assumptions:

• Slight appreciation of the lari against major trading partners' currencies, such as euro, USD etc. Price of the Brent to stay around $80 per barrel
• Price stability on other consumer goods
• Real GDP growth to be 10.5 percent in 2021, and 6 percent in 2022.

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