July 2016: Georgia’s GDP grows 2.1%

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

In July 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 3.1 percent for the second quarter (Q2) of 2016 y/y.

The estimated real GDP growth for the first seven months of 2016 reached 2.7 percent 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 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 this year.

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 also forecast Georgia’s real economic growth will 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.