Analysis by Region - Emerging Markets - Georgia
Georgia's economy performed strongly in H1, prompting us to raise our 2023 GDP growth forecast to 6.8% from 3.6% previously. We expect growth to moderate in 2024 but remain solid at 4.1%, modestly down from our previous forecast of 4.4%. Solid foreign inflows are reinforcing domestic spending, which is proving resilient to tight monetary and fiscal policies. Risks are broadly balanced, with the possibility of stronger-than-expected foreign inflows the main upside risk, while downside risks are mainly linked to the external environment.
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