May 2016: Georgia’s GDP increases 2.1%

Georgia’s economy is growing, shows preliminary data published by the National Statistics Office of Georgia (Geostat).

In May 2016 the estimated real Gross Domestic Product (GDP) growth rate reached 2.1 percent year-on-year (y/y), while the estimated real GDP average growth equalled 2.9 percent for the first five months of 2016 y/y.

Geostat noted the quarterly real GDP growth may differ from monthly rapid estimates as data did not exist in some sectors and estimations were used instead.

In the first quarter of 2016 (Q1), the real growth of Georgia’s GDP was 2.6 percent and the country’s nominal GDP totalled 7.351 billion GEL ($3.02 billion USD). At the same time the country’s GDP deflator increased four percent.

In March this year Georgia’s Prime Minister Giorgi Kvirikashvili said the country was preparing for a huge boost in economic growth and the goal was to achieve 3.5 percent economic growth in 2016 and hit six percent in 2017.

Georgia’s Economy Minister Dimitry Kumsishvili also believed the country’s economy will grow more than three percent.

The National Bank of Georgia (NBG) and various international financial institutions projected Georgia's economic growth will reach three percent in 2016.

Global rating agency Moody’s and Bloomberg forecast Georgia’s real economic growth will grow and reach three percent in 2016.

World Bank Group calculated Georgia’s economic growth for the next three years; it predicted Georgia's economy will grow three percent in 2016, 4.5 percent in 2017 and five percent in 2018.

Meanwhile the International Monetary Fund (IMF) projected Georgia’s economy will experience six percent growth in 2017.