According to GeoStat’s preliminary estimates in the fourth quarter of 2024, Georgia’s nominal GDP reached GEL 25,309.6 million, with a year-over-year real GDP growth of 8.3% and a GDP deflator change of 4.0%. The economic expansion was largely driven by strong growth in several key sectors. The most notable increases were observed in Education (+36.2%), Information and communication (+29.7%), Human health and social work activities (23.6%), Mining and quarrying (22.5%). These sectors played a major role in boosting overall economic activity. Conversely, the sharpest contractions were recorded in Activities of households as employers (-4.5%), Real estate activities (-2.3%), and Wholesale and retail trade (-0.2%), slightly offsetting the broader gains. The projected real GDP growth for 2025 from NBG is 5.0%, which is slightly above the WB projection of 4.5% y/y growth, but below the IMF projection of 6% y/y growth (Figure 1).
In the fourth quarter of 2024, the Georgian Lari (GEL) depreciated compared to the previous year. Over the same period the nominal effective exchange rate depreciated insignificantly. It should be noted that GEL appreciated against Lira by 16%. The REER depreciated by 0.4% on a quarterly basis and by 6.3% year on year. Also, it should be noted that the GEL real exchange rate appreciated against all main trading partners, except EU.
Georgia’s stringent monetary policy has effectively curbed inflation expectations, bringing domestic inflation below the target level. The decrease in service prices has been a significant factor in this reduction, alongside the diminishing effect of previously increased apartment rental costs due to a surge in foreign visitors. These factors have collectively contributed to a more stable inflation rate, aligning with the country’s monetary goals (NBG, July 2024).
Compared to the increasing unemployment in Q3 of 2023 (15.3%), the unemployment rate in Q4 of 2024 fell to 14.2 (Geostat). Average annual labor force participation has also increased by 0.6pp, reaching 54.9%. Based on Geostat’s preliminary estimate, in the fourth quarter of 2024, average monthly nominal earnings reached 2217.5 GEL.
In conclusion, Georgia’s economy in the fourth quarter of 2024 has shown robust growth with a notable increase in nominal GDP and real GDP growth. This positive trend is reflected across various sectors, particularly in information and communication, education, and Human health and social work activities. Despite a decline in foreign demand, domestic demand remains strong, with consumption remaining the primary driver of growth.
For the complete index publication, please refer to the attached document (above).
08
January
2025
According to GeoStat’s preliminary estimates in the second quarter of 2024, Georgia’s nominal GDP reached GEL 24,855.7 million, with a year-over-year real GDP growth of 11.0% and a GDP deflator change of 4.3%. The growth was driven by significant increases in value-added across various sectors: Education activities rose by 35.6%, Information and communication rose by 32.8%, Construction by 30.9%, Financial and insurance activities by 22.9%, Public administration and defense, including social security by 14.7% and Wholesale and retail trade, including repair of motor vehicles and motorcycles by 11%. Conversely, there was a decline in value-added in electricity, gas, steam, and air conditioning supply by 13.6% and in Real estate activities by 4.9%.
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%.
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%.
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.
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.
