Georgian economy grows 5.2 % in September 2019

The Georgian gross domestic product (GDP) has increased 5.2 per cent in September 2019 compared to the same period of last year, show the latest data from the National Statistics Office of Georgia (Geostat).

Geostat reports that real GDP has grown in January-September 2019 by five per cent year on year (y/y).

In September 2019 the estimated real growth compared to the same period of the previous year occurred in the following sectors: construction, transport, hotels, restaurants and manufacturing.

A decrease was registered in mining and quarrying, in community and in social and personal service activities.

High economic growth in September is another confirmation of the right and consistent economic policy of the Georgian government, which has been supported by a stable macroeconomic environment, effective reforms and an increase in public capital spending,” said Deputy Economy Minister Ekaterina Mikabadze.

She noted that Standard & Poor's (S&P) Global Ratings has raised its long-term foreign and local currency sovereign credit ratings on the Government of Georgia to 'BB' from ‘BB-’. 

Georgia has maintained comparatively high growth rates over the past few years, even in a challenging external environment”, S&P reported.

• Standard & Poor’s upgrades Georgia to 'BB' with stable outlook

The institutional strength of the country was an important factor in improving the rating. Reforms planned for the current and coming years will help improve the competitiveness of the private sector, which in turn will create new jobs and also make economic growth more inclusive,” Mikabadze said.

Mikabadze noted that important contributor to economic growth is increasing money transfers which is one of the key components of domestic demand, and has a positive effect on economic growth.

The amount of money transfers to Georgia in September 2019 was $149.8 million, which is a 13.9 per cent increase compared to September 2018.

• Money transfers to Georgia amount to $149.8 million in September 2019

In January-September 2019, the value of exports increased by 11.1 per cent and reached $2.72 billion, while imports decreased 3.3 per cent and amounted to $6.47 billion, said Geostat.

Georgia’s external trade turnover increased to $9.2 billion (0.53%) in January-September 2019.

Geostat data show that 4,014 new enterprises were registered in September, which is a 1.4 per cent decrease compared to September 2018.