BAKU, Azerbaijan, April 9. The government’s initiative on the relocation of international companies operating mainly in the IT sector to Georgia is a boon for the country’s GDP growth, reports Trend via the economic review of the investment bank Galt & Taggart.
According to the bank’s initial GDP growth forecast, Georgia’s economic growth is projected at 3% in 2022, however, international business moving to Georgia could boost GDP growth to 4-4.5%.
Georgia’s GDP growth in February 2022 (14.6%) appeared to be the highest in the region, partly due to last year’s low base, however, strong growth in external inflows and domestic demand were the main reasons, the report said.
Georgia’s economic growth from January to February 2022 was supported by increased activity in several sectors, such as industry, transport and storage, hotels and restaurants, entertainment, trade and l real estate, the bank noted.
Meanwhile, COVID-19-related restrictions were fully lifted from March 28, which should support strong growth in the tourism and catering sectors – those heavily impacted by safety regulations, it said. the bank.
Galt & Taggart also believe there are benefits from growth in migrant GDP and trade flows, despite the difficulties in quantifying the magnitude of the precise impact currently.
“We estimate that the influx of migrants from Russia, Belarus and Ukraine could add 0.3 to 0.5 percentage points to GDP growth, while the redirection of international cargo flows via Georgia could increase it by an additional 0.7 percentage points,” the bank concluded.
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