First Deputy Finance Minister expects 2024 growth forecast to be revised upwards

Giorgi Kakauridze, the First Deputy Finance Minister of Georgia, on Thursday said the domestic economic growth rate for 2024 was expected to be revised upwards due to "positive trends".

During the update on the three-month review of the implementation of the country's 2024 state budget at the Agrarian Affairs Committee of the Parliament, Kakauridze said the budget had been initially planned with a 5.2 percent growth, before the average growth in the first quarter of the year turned out to be 7.8 percent.

The real gross domestic product growth was 5.8 percent in January, 9.5 percent in February [and] 8.2 percent in March. We anticipate to revise the economic growth rate for 2024 and adjust it upwards when we present updated macroeconomic forecasts on June 1", he said.

The official noted inflation had been low over the past year with the annual rate of 0.5 percent in March and average inflation of 0.7 percent for the first quarter.

In the foreign sector, Kakauridze said there was a decrease in external trade turnover in the first quarter, as well as a decline in remittances, particularly from Russia. However, he said revenues from tourism had increased by 1.5 percent year-on-year.

Kakauridze also highlighted the combined budget revenues exceeded the forecast rate, while the deficit was at 0.3 percent, indicating that expenses were in line with the plan.

He further discussed budget performance of individual agencies, emphasising the Ministry of Environmental Protection and Agriculture's “high execution rate in various areas”.