Interfax reported that the European Bank for Reconstruction and Development is now forecasting Georgian GDP growth for this and next year at an annual 5.5%.

The EBRD was back in January projecting that Georgia's GDP would expand 5% in 2012. The latest EBRD report predicts that economic activity in Georgia will pick up steam in the second half of this year. A package of external financial aid provided by a wide circle of donors after the crisis of 2008 has to a significant degree been exhausted, so the Georgian authorities are paying special attention to private sources of financing, including through the use of a public fund created to attract private investments to key economic sectors.

The EBRD emphasizes that the economic uncertainty prevailing outside Georgia has been eased with a new program of cooperation between the country and International Monetary Fund under which the country can in 2012-2013 make use of credit resources amounting to 250 million SDR.

The Bank projects average annual inflation in Georgia at 2% this year versus 8.5% last year. Early this month, the Georgian government improved its 2012 economic growth forecast from 5% to 6% and expects GDP to grow 6.5% in 2013. The IMF reckons inflation in the country at 6% this year and 5.5% next year the World Bank figures a respective 5% and 5.2% and the Asian Development Bank 6% and 6.3%.

According to National Statistics Service data, Georgia GDP expanded 7% last year after 6.3% growth the year before.

Source - Interfax

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