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%. Conversely, there was a decline in value-added in electricity, gas, steam, and air conditioning supply by -11.6%, Other service activities by -11.2%, and Mining and quarrying by -1.8%. Trade accounted for the largest GDP share at 13.5%, followed by Real estate activities at 11.1%, Manufacturing at 9.2%, Public administration at 8.3%, Construction at 7.5%, Education at 6.6%, Financial and insurance activities at 6.0%, and Information and communication at 5.9%. The projected real GDP growth for 2024 from NBG is 5.6%, which is slightly below the IMF and WB projection of 5.7% y/y growth (Figure 1).

In 2023, Georgia’s economic growth was primarily fueled by strong domestic demand. Conversely, foreign demand waned, contributing negatively to growth in the fourth quarter due to the diminishing migration effect. The previous year’s surge in migration had significantly boosted traveller revenue, with service exports soaring by 87.9%. However, the growth rate of income from travellers fell in 2023 because of the base effect and a reduction in migrant numbers. Despite this, structural changes in the economy, particularly a rise in information and computer service exports from 0.4% to 2.6% of GDP, helped offset the decline and propelled the economy’s overall potential.