(MENAFN- Trend News Agency)
BAKU, Azerbaijan, August 26. The Asian
Development bank (ADB) remains optimistic about Georgia's economic
prospects despite regional challenges, said Lesley Bearman Lahm,
ADB Country Director for Georgia, in an interview with Trend .
Lahm provided insights into the ADB's projections for Georgia's
economic growth, inflation rate, and monetary policy, while also
discussing the bank's financing plans for the coming years.
"ADB recognizes Georgia's strong track record of impressive
macroeconomic performance, ensuring resilient economic recovery and
price stability following COVID-19 and the Russian invasion of
Ukraine," Lahm stated. She highlighted Georgia's V-shaped recovery
post-pandemic, marked by two consecutive years of double-digit
growth in 2021 and 2022, alongside a low inflationary environment
and continued robust growth in 2023 and 2024, with a growth rate of
9.3 percent to date.
However, Lahm acknowledged the challenges ahead, especially
given the geopolitical tensions and economic developments in the
wider region. "Though revenue from tourism continues to remain
strong, increasing by 1.5 percent in the first quarter of 2024
year-on-year and demonstrating 40 percent growth compared to the
pre-pandemic level in 2019, we have observed a 36-percent decline
in money transfers in the same period, along with a 10-percent
annual decline in exports," she explained. These export challenges
were attributed to a slowdown in vehicle re-exports and weak global
demand for ferroalloys.
Despite these headwinds, Lahm noted that Georgia's unemployment
and poverty rates have dropped to historically low levels, with
unemployment at 14 percent and poverty at 11.8 percent. "The IMF
recently recognized Georgia as one of the best performers globally
in terms of job creation and unemployment reduction, assessing the
past 10-year unemployment trend across countries," she added.
Nonetheless, Lahm emphasized the need for Georgia to continue
implementing structural reforms to diversify its economy, enhance
labor productivity, and support technological innovation.
Looking ahead, Lahm outlined the ADB's financing plans for
Georgia, which are aligned with the country's National Development
Strategy, Vision 2030. "The 5-year partnership strategy that ADB
has endorsed for Georgia directly supports three major priorities –
economic development, social policy and human capital development,
and public administration," she said. ADB's focus will be on
promoting regional cooperation and integration, private sector-led
growth, and sustainable development.
"We will continue to help Georgia expand its multi-modal
transport network, strengthen the population's climate- and
disaster-resilience, and scale up clean energy generation and
trade," Lahm noted. ADB's support will also extend to strengthening
national social protection systems, pension reforms, and capital
market development, as well as enhancing vocational education and
training alongside the country's general education system through
ongoing and planned projects.
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