TBILISI Dec 17 Georgia's parliament cut its
economic growth forecast for 2016 to 2.7 percent from 3 percent
in a budget amendment late on Friday, highlighting the impact of
falling exports and an expanding current account deficit.
Growth has been slowing in the former Soviet republic,
slipping to 1.3 percent year-on-year in October from 1.5 percent
in September. The economy has been hit by a plunge in the
Russian rouble and by a drop in remittances from
Exports fell 5 percent year-on-year to $1.920 billion in the
January-November period, while the current account deficit
expanded by 44 percent to $6.991 billion.
Georgia, which is crisscrossed by pipelines taking Caspian
oil and gas from Azerbaijan to Europe, saw its economy grow 2.5
percent in the first 10 months of the year compared with the
same period last year.
The country's new forecast matches that of the International
Monetary Fund, which has cut its projection from an earlier 3.4
In the amended budget, revenues will be reduced to 8.546
billion lari ($3.201 billion) from 8.555 billion, while spending
will be raised to 8.671 billion lari from 8.543 billion.
(Reporting by Margarita Antidze; Editing by Alison Williams)