Indexes
Quarter 4 2021, Macro Review | The 2021 Georgian economy – the year in review
11
April
2022
For the Georgian economy, 2021 was a year of gradual recovery from the COVID-19 pandemic. According to Geostat rapid estimates, the real GDP expanded by 10.7%, coming within 0.1 percentage points of the ISET-PI forecast from November 2021 and surpassing the NBG and IMF mid-year projections, which ranged between 8% - 8.5% y/y. While the high growth rate was driven in part by the low base of 2020, it was not merely a recovery from the pandemic-driven shock. The real GDP of 2021 went above the corresponding periods of 2019, implying a positive net increase in GDP. This GDP growth was fueled mainly by increased consumption and net exports, as the progressive restoration of international tourist flows significantly boosted the export of services and pent-up demand lifted consumer spending.
The GDP expansion process was challenged by rising inflation. Rising prices of international commodities fueled by the COVID-19-related restrictions, logistical challenges, and increased demand put an upward pressure on inflation in both developed and developing countries. Georgia was no exception, with the inflation rate reaching double digits in the second half of the year. The unemployment rate in 2021 increased by 2.1 percentage points y/y, reaching 20.6%. However, one could observe a declining trend in the unemployment indicator, as in the fourth quarter of 2021 the unemployment rate decreased by 1.4 pp compared with the corresponding period of 2020, and amounted to 19% y/y. Average annual labor force participation increased by 0.65% y/y; the number of hired employees contracted by 1.88% y/y, while the number of self-employed people decreased by 2.21% y/y. In the second half of 2021, labor productivity significantly increased. Correspondingly, gross salaries of employees averaged 1,463.8 GEL, showing a nominal annual growth of 22.9%. Additionally, according to the NBG Monetary Policy Report, the unit labor cost increased in 2020 due to economic contraction followed by a smaller decline in wages. As output started to recover, so did the productivity of labor, driving the decrease in unit labor cost.
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Quarter 2, 2024 Macro Review | Strong gdp growth driven by key sectors amid global and domestic challenges
02
October
2024
According to GeoStat’s preliminary estimates in the second quarter of 2024, Georgia’s nominal GDP reached GEL 22,101.7 million, with a year-over-year real GDP growth of 9.6% and a GDP deflator change of 2.5%. The growth was driven by significant increases in value-added across various sectors: Accommodation and food service activities rose by 35.7%, Education by 21.3%, household activities as employers and producers of goods and services for personal use by 17.3%, Transportation and storage by 16.1%, Public administration and defense, including social security, by 13.3%, and Construction by 13%.
Quarter 1, 2024 Macro Review | Georgia’s robust growth amid global recovery challenges
28
June
2024
According to GeoStat’s preliminary estimates in the first quarter of 2024, Georgia’s nominal GDP reached GEL 18,913.2 million, with a year-over-year real GDP growth of 8.4% and a GDP deflator change of 3.1%. The growth was driven by significant increases in value-added across various sectors: Real estate activities rose by 18.8%, Education by 29.1%, Public administration and defence, including social security, by 13.0%, Construction by 10.3%, Information and communication by 12.2%, and Transportation and storage by 9.7%.
Quarter 4, 2023 Macro Review | Georgia's economic resurgence: GDP growth exceeds forecasts amid global slowdown
01
April
2024
Similar to the year 2022, Georgia stayed on the path of economic recovery from COVID-19 in 2023 as well. According to GeoStat’s preliminary estimates, the real GDP continues to show a relatively high growth rate, measuring at 7.5% y/y in 2023 – which is remarkably higher than the NBG’s real GDP growth expectation of 6% from October 2023.
Quarter 3, 2023 Macro Review | Economic landscape in Georgia: navigating growth amidst global uncertainties and regional dynamics
29
December
2023
The global recovery from both the COVID-19 pandemic and Russia's invasion of Ukraine is progressing slowly and unevenly. While there was initial economic resilience earlier in the year, marked by a rebound in reopening and efforts to reduce inflation, it is premature to feel reassured. Economic activity has yet to fully return to pre-pandemic levels, particularly in emerging markets and developing economies, and regional disparities are widening.
Quarter 2, 2023 Macro Review | Annual economic review: unpacking the slower GDP growth, inflation stability, and changing the FX stream dynamics
23
October
2023
Global economic growth is anticipated to decrease from 3.5 percent in 2022 to 3.0 percent in both 2023 and 2024. In comparison to the April 2023 World Economic Outlook (WEO) projections, there has been a modest 0.2 percentage point improvement in the growth forecast for 2023, while the 2024 projection remains unchanged.
