Georgia’s real GDP growth rate in Q3 reached 4.4% year-on-year, putting the country on the path to achieving 4.7% annual growth in 2017. Export, tourism and money transfer trends were behind the strong showing in Quarter 3.
Supply side pressures will keep inflation above the 4% target in 2017.
The Georgian lari (GEL) depreciated against the trade partner currencies both relative to the previous quarter and relative to Q3 of the last year.
Exports rose overall by 25.5% year-on-year in Q3, which was chiefly due to an increase of external demand for traditional Georgian exports, namely ferro-alloys, car re-exports, and wine. The latter increased by 61.2% year-on-year.
Hazelnuts, one of country’s top exports, declined by nearly 56% compared to last year due to harvest damage caused by brown marmorated stink bugs in Western Georgia Exports to CIS countries are becoming prominent once again, driven by the increase of exports to Russia, Azerbaijan and Armenia.
Improvement in credit activity was one of the main drivers of economic growth in the third quarter of 2017. Retail loans increased by nearly 25% % YoY, while business loans showed a 9.5% increase.
In Q3 2017, the volume of remittances in Georgia grew by nearly 20% compared to last year’s level. All primary source countries (Russia, the U.S., Italy, Greece, and Israel) showed a positive annual change. Remittances from abroad constituted 3.2% of total monthly average income in Georgia; however, for recipient families, this share accounted for 42%.
Tourism was yet another significant factor accelerating economic growth in Georgia in Q3. In the reported period, Georgia hosted 2.827 million international arrivals, a 26% year-on-year increase.
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.
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.
