Georgia’s economy grows 5.3% in March 2017

Georgia’s economy is growing steadily and the country is experiencing positive economic dynamics thanks to the increase in exports, hosting more tourists and receiving a larger amount of remittances.

In March 2017, the estimated real Gross Domestic Product (GDP) growth rate amounted to 5.3 percent year-over-year (y/y), said the National Statistics Office of Georgia (Geostat).

Meanwhile, the estimated real GDP average growth equalled five percent for the first quarter (Q1) 2017 y/y.

Construction, manufacturing, hospitality sector, trade and real estate operations – these are the fields that contributed the most in the country’s economic growth, announced Georgia’s Ministry of Economy.

This year exports have significantly increased, as well as the number of tourists and the amount of remittances.

In particular, Georgia received 22 percent more in remittances in January-March of 2017 than the same time period last year. Overall, the country received $290 million from abroad.

Money generated from international tourism in January-March of 2017 reached $435 million. This was 23 percent more compared to the same months of 2016.

As for the external trade of Georgia, in the first three months of 2017 export of following commodities have increased:

• Ferro-alloys – increased by 201 percent
• Wine – increased by 62.5 percent
• Medicines – increased by 60 percent
• Copper ores and concentrates – increased by 17 percent

Various international financial institutions also have positive expectations about Georgia’s economic growth.

The World Bank Group projects Georgia’s economic growth will hit 4.5 percent in 2017 and five percent in 2018.

The International Monetary Fund (IMF) expects four percent growth for Georgia’s economy in 2017.

Global rating agency Fitch Ratings forecasts 4.2 percent growth in 2017 for Georgia.

As for government authorities, Georgia’s Prime Minister Giorgi Kvirikashvili had earlier stated the goal was to achieve six percent in 2017, while the Finance Minister Dimitry Kumsishvili expected economic growth to exceed five percent this year.