EBRD projects Caucasian economies to grow over next two years

BAKU AZERBAIJAN - SEPTEMBER 25: People goes by the seafront of Baku on September 25 2016. Baku is a capital and largest city of Azerbaijan.

Analysts at the European Bank for Reconstruction and Development (EBRD) have said that they expect the gross domestic product of all three South Caucasian economies to grow in both 2019 and 2020.

According to the EBRD’s latest Regional Economic Prospects report, Armenia’s economic growth is projected at 4.5 per cent in 2019 and another 4.5 per cent in 2020 after the country’s real GDP grew by 5.2 per cent last year. At 28.5 per cent, capital investments were the largest contributor to growth.

After a decline and near stagnation in 2016-2017 followed by a revival of 1.4 per cent growth in 2018, the EBRD says that the Azerbaijani economy will expand by 3.5 per cent in 2019 and 3.3 per cent the following year. Last year’s growth was mainly powered by an increase in oil prices, as well as the country’s gas production and exports.

“The Georgian economy remains on the path of strong economic growth,” EBRD analysts said, adding that the economic output expanded by 4.7 per cent in 2018, driven largely by growth in trade, real estate, transport and financial intermediation. While the Georgian hospitality sector continued to boom last year, foreign investment decreased by 34.9 per cent compared to 2017, hitting a five-year low at only 7.3 per cent of GDP. The EBRD forecasts Georgia’s real GDP to grow by 4.5 per cent in 2019 and by the same rate in 2020.