러시아ㆍ유라시아

Georgia is recovering from an adverse external shock (a decline in trading partners’ growth since late 2014), although at a slower pace than previously envisaged. The economy has shown resilience to the external shock, with real GDP growth averaging 2.8 percent in 2015–16, the highest among its main trading partners, except for China and Turkey. The exchange rate was allowed to adjust, and the dollarized banking sector has weathered the significant depreciation vis-à-vis the dollar. With depreciation of major trading partner currencies, external competitiveness has not improved, however. Hence, external imbalances remain elevated and reserves below adequate levels. Following the October 2016 parliamentary elections that gave the ruling party a constitutional majority, the new government has united around a policy agenda centered on bolstering growth.