Azernews.Az

By Nazrin Gadimova

Georgia's economic growth slowed considerably due to lower public and private investment and policy uncertainty related to the post-election political transition and the presidential elections, the European Bank for Reconstruction and Development (EBRD) said in its latest Regional Economic Prospects report of November 11.

EBRD also reported on recession in construction and a slowdown in the industrial sector of Georgia.

"Under-spending of the capital budget by the government and contraction of private investments have contributed to a recession in construction and a marked slowdown in the industrial sector," EBRD said.

According to the report, Georgia's agriculture and trade have been buoyant after Russia started to re-open access to Georgian foodstuffs in its market.

EBRD reported that economic growth is expected to accelerate in 2014, provided both the political uncertainty subsides after the presidential elections and the improvement of Russian-Georgian commercial relations continues.

According to the bank, Georgia's GDP will increase by 4 percent in 2014, compared to 2013.

Earlier, ERBD Board of Directors approved a new strategy on Georgia, which covers the top priorities of the bank in the country for the period of 2013-2016.

Georgia's Finance Ministry and the European Bank for Reconstruction and Development (EBRD) also have signed a loan agreement worth 25.2 million euros that envisages the construction of a power transmission line in Georgia.

EBRD has operated in Georgia since 1993 and to date it has funded the implementation of 159 projects worth around 1.8 billion euros. Almost 66 percent of the total liabilities of the bank in Georgia accounts for the finance sector, 19 percent for the energy sector, 11 percent for industry, commerce and agriculture, and about 4.5 percent infrastructure.