Georgian economy grows 8.3% y/y in December - Statistics Office

The Georgian economy grew 8.3 percent year-on-year in December and by seven percent in 2023, the National Statistics Office said on Wednesday.

Last month’s growth was mainly driven by estimated real growth in construction, manufacturing, financial and insurance sectors, information and communication, the Office noted, adding declines were registered in energy and real estate sectors.

Deputy Economy Minister Vakhtang Tsintsadze said despite the “geopolitical tensions” and “external shocks” created in the wider region, the domestic economy maintained stability and continued to grow at a “high rate”.

Georgia has one of the highest economic growth rates for 2023, both in the European region and among [EU membership] candidate countries [...] This trend is expected to continue in the coming years”, he said.

The Deputy Minister also pointed to “record” results of the previous year, saying external trade turnover had exceeded $6.1 billion, while revenues from international tourism had crossed the $4.1 billion mark.

He noted investment activity in the country was also characterised by a growth trend.

All of the above-mentioned gives us positive optimism that economic growth will continue at this rate and that 2024 will be impressive in economic growth [...] We achieved higher economic growth than all forecasts [by various international financial organisations] during 2023”, Tsintsadze said.

The January edition of the World Bank’s Global Economic Prospects report said the Georgian economy would grow 4.8 percent in 2024.

The National Bank of Georgia has said it expects economic activity this year to “gradually normalise” in line with the growth rate of the potential gross domestic product, estimated at five percent. 

The country’s budget for 2024 is being planned with five percent growth.