The mentioned indicators were positively appraised once or twice by both government officials and analysts and representatives of international finance institutions. Moreover, it has to be also stressed that, using the 2017 budget, the 2017 economic growth forecast balances out 4% this also growth was achieved at the outset of 2017, when economic activity traditionally decreases. Consequently, there are actually justified expectations that economic growth pace will be positive next months too. Despite forecasts of Georgian Government, International Monetary Fund (IMF) decreased Georgia’s forecast indicator to a few.8%.

The monetary policy report by National Bank of Georgia (NBG) also analyzes economic growth forecasts as well as the current developments in the neighborhood. Using the report, Georgia’s economic rate of growth is among the most best ones among neighboring countries.

At the start of 2017 instable situation was maintained in the area, however, certain recovery signs have emerged. Region’s macroeconomic tendencies possess serious affect Georgian economy through commercial, money transfer and tourism channels. In accordance with IMF forecast, global economic boost 2017 will mark 3.5% and this is a better indicator. It needs to be also noted the mentioned expectations are preconditioned by comparatively? quick economic recovery forecasts inside the civilized world.

In February 2017 Ukraine’s economic recovery process declined as a result of complicated developments in eastern perhaps the country. Industrial production have reduced by about annual 5%. However, at the outset of April the IMF approved a fresh tranche for Ukraine. This fact creates positive effect on consumer and business moods and partly neutralized business activities contraction. In whole, bearing in mind these circumstances, IMF has slightly worsened the 2017 GDP growth forecast to annual 2%.

According to recent indicators, Russian economy continues process of healing. In March, industry sector considerably enlarged and international trade indicators were also improved. Oil price stabilization and implemented prudential policy also promote the procedure. In conjunction with alleviation of Ruble depreciation burden, over the past months annual inflation indicator decreased and marked 4.3% in March. According to IMF forecast, Russia’s GDP will rise by 1.4% in 2017, up 0.3% as compared to the previous report.

Along with Russian economy recovery, in Armenia, following a weak upturn in 2016, at the beginning of 2017 economic activity considerably intensified. Boost in money transfers and revenues from exports sometimes make positive effects on consumer moods. What’s more, the revolutionary government administration announced readiness for carrying out liberal reforms? for promoting foreign investments. However, as compared with assessments built in October 2016, IMF has lowered the 2017 real GDP growth forecast to 2.9%.

Like other countries with the Region, at the start of 2017 recovery signs appeared in Azerbaijani economy too. Namely, together with increased investments, non-oil industry indicators were also improved. Moreover, amid stabilization of worldwide oil prices, slowdown? in oil industry has decelerated. Not surprisingly, amid weaker-than-expected boost in 2016, IMF lowered real GDP growth? forecasts? to 1%.

After the 2016 weak wife or husband, as a consequence of counter-cycle measures of Turkish government, at the beginning of 2017, consumer demand and industrial production have considerably increased, however, uncertainty from political developments has produced negative effect on the industry. Amid heavy burden from LIRA depreciation, consumer prices inflation hit record figures within the last years in March (11.3%).

According to IMF assessment, the 2017 real GDP growth forecast made up 2.5% and this is worsened indicator compared to evaluations made in October 2017.? In respect of international economic growth and forecasts for Georgia’s main trade partner countries, as noted above, according the IMF forecasts, global economy will grow by 3.5%. Naturally, Georgia belongs to the international economy and, consequently, global economic developments have huge impact on developments in Georgia. Here we introduce presumable forecasts to your countries that considerably affect Georgia’s economic situation.

In comparison to its business activities, quick recovery paces are recorded in the states. Amid radically improved consumer mood and reduced unemployment, consumer demand is actually a main factor for GDP growth. Announced fiscal stimulus expectations also create positive attitudes.

According to IMF report, the US economy will grow by 2.3% in 2017. Eurozone economy process of healing is gaining momentum stage by stage, caused by improved consumer and business moods, development in demand and positive tendencies on labor market.

Despite this, consumer price inflation remains under 2% target indicator. In March, annual inflation comprised 1.5%. In accordance with IMF forecast, in 2017 Eurozone economy will rise by 1.7%.

At the start 2017, from the trade partner countries with reduced inflation expectations and reduced domestic currency depreciation, central banks smoothed monetary policy and created preconditions for improving business activities.? Concurrently, from the western world, where output growth comes behind potential growth and consumer prices increased at reduced rates, expectations for? monetary policy alleviation shall be maintained again.

As towards USA, amid expected high inflation, Federal Reserve System raised the policy rate in March. In line with the minutes on the committee meetings, the cost is expected tot rise twice again throughout 2017.