Georgia’s economy on track to reach 3% growth in 2016

Georgia’s economy is growing steadily and is on track to reach three percent growth by the end of the year.

Latest data by the National Statistics Office of Georgia (Geostat) showed in September 2016, Georgia’s estimated real Gross Domestic Product (GDP) growth rate reached 1.5 percent year-on-year (y/y).

Meanwhile, the estimated real GDP growth reached 2.2 percent for the third quarter (Q3) of 2016 and 2.6 percent for the first nine months of 2016, said Geostat. 

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

Meanwhile, global rating agency Fitch Ratings forecast growth of 3.2 percent in 2016 for Georgia. This was "driven by reviving confidence, higher government spending, tourism and the start of work on a gas pipeline project”.

The International Monetary Fund (IMF) projected Georgia’s economy will experience 3.4 percent growth in 2016 and 5.2 percent in 2017.

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

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

The National Bank of Georgia (NBG) and various international financial institutions such as global rating agency Moody’s, Bloomberg and World Bank Group projected Georgia’s economic growth will reach three percent in 2016.