The World Bank predicts a 1.6% economic growth in the Europe and Central Asian region in 2019, which is the lowest in the last four years. Turkey is named as the main cause of slow growth. Another reason is the reduction of trade in the region.
According to the bank’s predictions, the global economy will only growth 2.6% in 2019, instead of the
3 % expected from financial experts.
The economic growth slowdown in Europe and Central Asia is related to the situation in Euro Area. In particular, the World Bank suggests that instability in the main trading market will negatively impact trade turnover in the region.
Economic Growth Forecast in Central Asia and the European Region:
• Albania – 3.7%
• Armenia – 4.2%
• Azerbaijan – 3.3%
• Belarus – 1.8%
• Bulgaria – 3%
• Croatia – 2.5%
• Georgia – 4.6%
• Hungary – 3.8%
• Kazakhstan – 3.5%
• Kyrgyzstan – 4.3%
• Moldova – 3.4%
• Montenegro – 2.9%
• Poland – 4%
• Romania – 3.6%
• Russia – 1.2%
• Serbia – 3.5%
• Tajikistan – 6%
• Turkey: -1%
• Turkmenistan – 5.6%
• Ukraine – 2.7%
• Uzbekistan – 5.3%
The World Bank lowered Georgia’s economic growth forecast to 4.6% in April, the main reason behind the bank’s weak foreign demand and the regulatory set by the National Bank, which is responsible for liability. The bank expects to increase the forecast by 5% to 2021. For 2019, the previous forecast for 2019 was 5%.
In addition, the bank notes that new regulations in the banking sector will reduce the lending and demand from the private sector on the one hand but strengthen the financial sector. State-owned enterprises are also among the risks associated with the economy.
The report notes that 57 state-owned companies are high-risk carriers, to which the contractual.
Obligations of PPP are added.
