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A currency exchange rate board in Tbilisi (Reuters/David Mdzinarishvili)

Georgian economy heads for weak recovery

The Oxford Analytica Daily Brief ® - Friday, February 5 2016

Preliminary statistics released on January 29 indicate that the Georgian economy grew by 2.8% last year, following 4.6% growth in 2014. Assuming the headline figure is accurate, it points to a slowdown that is mainly attributable to impacts from economic recession in Russia. Georgian exports fell last year, owing to reduced demand in key markets, and the inflows of remittances sent home by expatriate workers declined. Both these factors contributed to pressure on the lari.

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Headings

  • Hardship until July
  • Smaller sums sent home by migrants
  • Domestic demand suppressed
  • Currency under pressure
  • Inflation target of 5%
  • Trade contraction

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