Georgia Sustaining Rapid Economic Growth : Country Economic Memorandum

World Bank

Georgia Sustaining Rapid Economic Growth : Country Economic Memorandum

Autores

World Bank

Editor

Washington, DC

Descripción

Sustaining rapid economic growth for reduced poverty and shared prosperity over the next decade and beyond in Georgia is an important goal and a key challenge for the authorities. While the record of growth over the last decade has been strong, the forces that drove this growth are unlikely to be sustained in the coming years. Sustaining strong growth in Georgia going forward will require new policies that help support both high investment financed increasingly from domestic sources as well as sustained rapid productivity growth in the tradable sectors. Ensuring a more sustainable source of financing for investment and accumulation will require raising low rates of national savings in Georgia. Sustaining rapid productivity growth of tradables will require reforms to address firm level constraints to improved allocative efficiency and productivity over the firm lifecycle. Supporting productivity growth will also require improved skills and deployment of workers that will also support employment generation and more inclusive growth going forward. Expanding productivity and growth of exports will require ensuring price competitiveness, enhancing market access, and improving logistics infrastructure. This report is structured in five chapters. Chapter one looks at the sources and prospects for growth, the record on national savings, and the prospects for raising savings. Chapter two is a diagnostic of the dynamics of firm-level productivity growth and the policies that may be constraining improved allocative efficiency and lifecycle productivity. Chapter three looks at employment and skills to assess whether Georgia's labor resources are adequately deployed. Chapter four is a diagnostic of exports and international trade and the policies that may be holding back growth and productivity of the export and tradable sectors in particular. Two appendices on the apparel and wine industries provide additional insight into policies to support export growth.

Palabras clave

ABSOLUTE POVERTY, ACCOUNTING FRAMEWORK, AGGREGATE DEMAND, AGGREGATE INCOME, AGRICULTURE, ANNUAL GROWTH, AVAILABILITY OF CREDIT, AVERAGE LEVEL, BANK ENTRY, BANK LOANS, BANK SPREADS, BANKING SECTOR, BENCHMARK, BORROWING COSTS, BUSINESS DEVELOPMENT, BUSINESS ENVIRONMENT, CAPITA INCOMES, CAPITAL ACCUMULATION, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INFLOWS, CAPITAL MARKETS, CAPITAL MARKETS DEVELOPMENT, CAPITAL STOCK, COLLECTIVE INVESTMENT, COMMERCIAL BANK, COMMERCIAL BANK LOANS, COMMODITY, COMPARATOR COUNTRIES, COMPETITIVENESS, CONSUMER DURABLE, CONSUMPTION GROWTH, CONSUMPTION LEVELS, CORPORATE PROFITS, CORPORATE SAVING, CORPORATE SAVINGS, COUNTRY VARIATION, CREDIT AVAILABILITY, CREDIT CARD, CREDIT CARD DEBT, CREDIT CARDS, CURRENCY, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DATA AVAILABILITY, DEBT, DEBTS, DEMOGRAPHIC, DEPOSIT, DEPOSIT RATES, DESCRIPTIVE STATISTICS, DIVIDEND, DIVIDENDS, DOMESTIC CREDIT, DOMESTIC CREDIT GROWTH, DOMESTIC FINANCIAL MARKETS, DOMESTIC MARKET, DOMESTIC SAVINGS, DURABLES, ECONOMIC AGENTS, ECONOMIC CRISIS, ECONOMIC DOWNTURN, ECONOMIC GROWTH, EMERGING ECONOMIES, EMERGING MARKETS, ENTERPRISE PERFORMANCE, EQUIPMENT, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXPORT GROWTH, EXPORT MARKETS, EXPORT SECTORS, EXPORT SHARE, EXPORTS, EXTERNAL DEBT, EXTERNAL FINANCING, EXTERNAL IMBALANCES, EXTREME POVERTY, FACTORS OF PRODUCTION, FINANCIAL CONSTRAINTS, FINANCIAL CRISIS, FINANCIAL INSTRUMENTS, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SERVICES, FINANCIAL STABILITY, FIRM GROWTH, FISCAL CONSOLIDATION, FISCAL DEFICIT, FISCAL POLICIES, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FREE TRADE, FREE TRADE AGREEMENT, FUTURE GROWTH, GDP, GDP PER CAPITA, GINI COEFFICIENT, GLOBAL ECONOMY, GROSS DOMESTIC PRODUCT, GROSS NATIONAL SAVINGS, GROWTH ACCOUNTING, GROWTH IMPACT, GROWTH INVESTMENT, GROWTH MODEL, GROWTH PATH, GROWTH PROSPECTS, GROWTH RATE, GROWTH RATES, HOLDING, HOUSEHOLD INCOME, HOUSEHOLD SAVING, HOUSEHOLD SAVING RATE, HOUSEHOLD SAVING RATES, HOUSEHOLD SAVINGS, HOUSEHOLD SURVEYS, HUMAN CAPITAL, INCOME, INCOME GROWTH, INCOME LEVEL, INCOME LEVELS, INCOMES, INDUSTRIAL COUNTRIES, INFLATIONARY EXPECTATIONS, INSTRUMENT, INTERNATIONAL DEVELOPMENT, INTERNATIONAL MARKETS, INTERNATIONAL STANDARDS, INTERNATIONAL TRADE, INVESTMENT INSTRUMENTS, INVESTMENT RATE, INVESTMENT RATES, JOB CREATION, LABOR FORCE, LABOR FORCE GROWTH, LABOR MARKET, LABOR SUPPLY, LIQUIDITY, LIVING STANDARDS, LOAN, LOCAL CURRENCY, LONG RUN, LONG TERM SAVING, LONG TERM SAVINGS, MACROECONOMIC STABILITY, MARKET ACCESS, MARKET DEVELOPMENTS, MARKET EFFICIENCY, MARKET REFORMS, MARKET SHARES, MARKET STABILITY, MEDIUM TERM, MIDDLE INCOME COUNTRIES, MONETARY FUND, MORTGAGE LOANS, MORTGAGES, NATIONAL ACCOUNTS, NATIONAL BANK, NATIONAL SAVING, NATURAL RESOURCES, NET EXPORTS, NON-PERFORMING LOANS, NPL, OPEN ECONOMY, OUTPUT, OUTPUT RATIO, OUTPUTS, OVERVALUATION, PENSION, PENSION FUNDS, PENSION REFORM, POLICY AREAS, POLICY MAKERS, POVERTY LINE, POVERTY REDUCTION, PRIVATE DEBT, PRIVATE SAVING, PRIVATE SAVINGS, PRIVATIZATION, PRO-POOR, PRODUCTION FUNCTION, PRODUCTIVITY GROWTH, PUBLIC DEBT, PUBLIC FINANCES, PUBLIC INVESTMENTS, PUBLIC SAVING, PUBLIC SAVINGS, PUBLIC-PRIVATE PARTNERSHIPS, RAPID ECONOMIC GROWTH, RAPID GROWTH, RATE OF INVESTMENT, REAL ESTATE, REAL EXCHANGE RATE, REAL GDP, REDUCED FORM EQUATION, REDUCED POVERTY, REDUCING POVERTY, REGIME CHANGE, RESERVES, RESIDENTIAL MORTGAGE, RETIREMENT SAVING, RETIREMENT SAVINGS, RETURNS, RICH COUNTRIES, RURAL AREAS, SAVINGS, SECTOR REFORMS, SECTORAL COMPOSITION, SOCIAL PROTECTION, SUSTAINABLE GROWTH, TARIFF BARRIERS, TAX, TAX RATES, TAX REVENUES, TFP, TOTAL CONSUMPTION, TOTAL FACTOR PRODUCTIVITY, TOTAL FACTOR PRODUCTIVITY GROWTH, TRADABLE SECTORS, TRANSITION ECONOMIES, UNEMPLOYMENT, UNEMPLOYMENT RATE, VALUE ADDED