Georgia, Azerbaijan Georgia and Azerbaijan: Fragile Recovery Possible
Both Georgia and Azerbaijan saw GDP growth decelerate in 2015 due to negative external factors. Azerbaijan's economy continued to contract in 1Q16, but Georgia showed some signs of recovery. As oil prices have stabilized above $40/bbl, pressure on the Azeri manat has eased. Pressure on the Georgian lari has also eased, and the currency has even strengthened, allowing the National Bank to cut the key policy rate.