Georgia reduces its economic growth forecast
The National Bank of Georgia has reduced its forecast for economic growth in 2013 to four percent.
The bank reported that the agricultural and processing industry will play a key role in economic growth.
The bank's experts believe that the economic growth rate in 2013-2014 depends on increasing confidence of the business sector and the efficiency of investment projects announced by the government.
"Low economic growth is due to lower consumer confidence and the weakening of activity in the financial and business sectors. Despite the high liquidity of the banking sector, lending activity remains at low levels," the report reads.
The reduced business activity remains a negative risk for economic growth and the economy will reach a six per cent growth by the second quarter of the next year. This figure is forecast to be at the seven per cent level by the end of 2014.
Agriculture, the processing industry, tourism and trade will mainly contribute to economic growth in future.