Indexes
Quarter 4 2020, Macro Review | The 2020 Georgian economy – the year in review
31
March
2021
The COVID-19 outbreak had a devastating effect on the Georgian economy in 2020. Real GDP contracted by 6.1% according to Geostat’s rapid estimates of economic growth. This was the worst performance of real GDP growth in the country in more than two decades. According to the latest estimates, the economic reality turned out to be far worse than the mid-year projections from NBG, IMF and the World Bank for 2020, which ranged from -4% to -5% y/y. Unemployment increased by 0.9% y/y, while labor force participation decreased by 1.3% y/y in 2020. Hired employees were among those worst affected by the crisis: their number decreased by 5.8% y/y. The unprecedented simultaneous negative demand and supply shocks were at the heart of the economic devastation caused by the virus. Uncertainties related to the pandemic itself and containment measures against it considerably reduced aggregate demand both in Georgia and globally. Domestic and external demand for tourism and related services weakened significantly.
As a result, the current account deficit widened even as imports declined. The deficit, driven by lower revenues from the export of services and curtailed foreign direct investments (FDI), put significant devaluation pressure on the lari exchange rate throughout the year. In addition to demand pressures, pandemic-related constraints distorted global and regional supply chains and increased production costs. This, in turn, negatively affected aggregate supply. On the positive side, the economic impact of COVID-19 in Georgia could have been much deeper if it were not for strong fiscal stimulus, substantial bank lending, and better-than-expected remittances performance. These three factors helped mitigate the economic fallout from the epidemic in 2020.
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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.
