Bank of Georgia Financial Analysis

PRODUCTIVITY AND CAPITAL HAVE BEEN THE MAIN ENGINE OF GROWTH SINCE 2004 Overall contribution of capital, labour, and Total Factor Productivity (TFP) to growth, 2010-2018E TFP growth 1.6% Contributions of capital, labour, and TFP to growth during periods Source: GeoStat, G&T calculation Labor force 0.6% Source: GeoStat, G&T calculation 10% 8% 6% 4% 2% Capital stock 2.7% 0% -2% 2004-07 Real GDP growth projection, 2019 6% 5% 4% 3% 2.7% 2% 1.6% 1% 0.4% 0% Turkey Source: IMF 2.9% 3.0% 3.1% 3.2% 3.3% 3.4% 3.5% 3.6% 2008-09 2010-13 2014-18E ■TFP growth ■Labor force Capital stock Real GDP growth: Georgia, CIS, Eastern EU 8% 4.8% 4.6% 7% 3.8% 6% CIS 5% 4% 3% 2% Eastern 1% Europe 0% -1% -2% -3% Russia Ukraine Lithuania Czech rep. Bulgaria Estonia Latvia Romania Poland Azerbaijan Moldova Georgia Armenia BANK OF GEORGIA Source: IMF, Geostat Georgia 2010 2011 2012 2013 2014 2015 2016 2017 2018E 2019F 2020F 40

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