Georgian Macroeconomic Review. May 2013

Post-election uncertainty looks to be taking a toll on Georgia's economic activity, and real GDP growth this year will likely be the weakest since 2009 on a slump in investment demand. That said, we remain confident the government will try to spur growth by unfreezing investment projects towards the year-end. The Georgian economy's key positives are a narrowing of the C/A deficit, sizeable external debt inflows, and related exchange rate stability, which is poised to persist through the year-end.