ISET

According to GeoStat estimates, real GDP grew by 2.6% year over year in February 2016. This growth rate is an improvement over the 0.8% growth observed in the previous months. Still, in order to reach the predicted quarterly 2.9% growth (the ISET-PI forecast for Q1 real growth), the economy would have to have expanded by at least 5.4% in March. While the actual growth for March is likely to be lower than that figure, the increases in the consumer and business confidence indices (CCI, BCI) in the last month can be interpreted as good signs for the economy going forward. The resilience to macroeconomic shocks which the Georgian economy exhibited in 2015-2016 provides a good foundation for the country’s long-term development plans. Download the full report

According to GeoStat data, real GDP growth was 0.8% in January and 2.8% in February 2016. While these figures are by no means high, growth rates in the rest of the region are expected to be quite low this year. In this respect, in contrast to its neighbors, Georgia is performing reasonably well.
According to the World Bank GDP forecast made in January 2016, the Georgian economy will grow by 3.0% this year, which is above the expected growth of Eastern Europe (0.5%), Azerbaijan (0.8%), Armenia (2.2%), and Russia (-0.7%). The ISET-PI forecast for the first and second quarters of 2016 is 2.9% and 5.0% respectively. The recently-updated forecast predicts 3.3% year-over-year real growth in 2016. Download the full report

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