Georgian Macroeconomic Review. October 2015

The Georgian economy has digested the external shocks stemming from recessions in Ukraine and Russia at an entirely reasonable cost with a 22% YTD currency depreciation. In the coming months the weaker currency will enable keeping the country's C/A gap under control. On the downside, 8M15 GDP growth of 2.8% yoy was well below the economy's potential and we steadfastly believe a new wave of structural reforms is badly needed to reinvigorate growth. The weaker lari should also pump up exports and the economy overall, although the effects will not be significant and will be stretched over some period, in our view.

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