Georgia’s economy growth “exceeded IMF’s expectations”

Georgia’s economy is growing and exceeding the projected outlook of the International Monetary Fund (IMF).

Georgia’s Gross Domestic Product (GDP) experienced an average real growth of 2.2 percent year-on-year (y/y) in September, said the country’s National Statistics Office (Geostat), while IMF expected only two percent growth.

Preliminary data revealed the estimated real GDP growth reached 2.5 percent for the third quarter (Q3) of 2015 y/y and 2.7 percent y/y for first nine months of 2015.

Back in May IMF projected Georgia’s economic outlook as two percent in 2015.

The Regional Economic Outlook Update for the Caucasus and Central Asia (CCA), released on May 19, predicted current growth trends in the CCA region would decline this year as a result of lower commodity prices and the economic slowdown in Russia.

Now it is higher than 2.5 percent and it is more than what we have expected,” said IMF Resident Representative in Georgia Azim Sadikov.

He said in the coming years Georgia’s economy will grow further and the figures will be higher than in any other oil importer countries.

This is good for the business environment and this is a result of the Association Agreement and all structural reforms,” Sadikov added.

Also in May the European Bank for Reconstruction and Development (EBRD) announced Georgia’s economy was expected to decelerate its growth to 2.3 percent in 2015 and 2.6 percent in 2016, reflecting mainly a deteriorating external environment, with recession in Russia and sharp slowdown of regional trading partners.

Meanwhile, global ratings agency Fitch Ratings has revised its outlook for Georgia and predicted the country would experience 2 percent economic growth in 2015.

This revised prediction was a downgrade on its 2014 economic forecast of 4.8 percent.

In March, this year, another global rating agency Moody's published a report which said Georgia’s economy would grow by 3.5 percent in 2015.