October 2018: Georgian economy grows 6.7%

The Georgian economy grew 5.7% year-on-year in the first 10 months of 2018, announces the National Statistics Office of Georgia (Geostat).

The estimated real gross domestic product (GDP) growth rate in October 2018 was equal to 6.7% year-on-year, Geostat said.

Identifying the main GDP growth trends in October, Deputy Economy Minister Ekaterine Mikabidze said that estimated real growth compared to the same period of the previous year was posted in manufacturing, trade and construction.

In the reporting period export of goods has increased by 15% and totalled $303 million. Revenues from tourism also increased by 14.1% and reached $246 million. Georgia received $116 million in remittances. Turnover of enterprises registered in Georgia increased by 13.9% compared to the same month in 2017. All these factors have a positive impact on economic growth”, said Mikabidze. 

Various international financial institutions also have positive expectations for Georgia’s economic growth.

In 2018, the World Bank predicts Georgia’s economic growth to hit 4.2 percent while the European Bank for Reconstruction and Development (EBRD) says Georgia’s economy will grow by 4.5 percent.

The Asian Development Bank (ADB) raised Georgia’s 2018 growth forecast to 4.9 per cent from the April estimate of 4.5 per cent reflecting strong growth in tourism and robust investment after an increase in business and investor confidence.

The International Monetary Fund (IMF) has moved its forecast up, saying the Georgian economy will grow by 5.5 percent in 2018.