Georgian economy grew 12% in August, says Statistics Office

The Georgian economy grew 12 percent year-on-year in August, while the average real gross domestic product growth for January-August equalled 10 percent, the National Statistics Office of Georgia said on Monday.

Last month, the estimated real growth contributed “significantly” in professional, scientific and technical activities, information and communication, construction, financial and insurance activities, real estate activities and trade.

On the other hand, decline was registered in the energy sector.

Vakhtang Tsintsadze, the Deputy Economy Minister, said economic growth was being driven by “positive trends” in exports, which saw a 30 percent year-on-year increase in August, exceeding $640 million. He also highlighted a “significant” increase in tourism revenues in the third quarter on the backdrop of economic activity in the sector.

We expect the current trend of economic growth to continue in the coming months. Several international financial institutions have revised Georgia's economic indicators to reflect growth. We anticipate the country’s economic growth rate will surpass forecasts of various international financial organisations, leading to additional jobs, increased foreign direct investments, and overall higher income for the population”, Tsintsadze said.

The European Bank for Reconstruction and Development has raised Georgia's economic growth forecast for 2024 by 1.3 percentage points, to 6.5 percent, from its previous prediction in May.

The latest Regional Economic Prospects report of the Bank, released last Thursday, said the revision to this year’s forecast for the country reflected “strong growth” in manufacturing output.

The Asian Development Bank has also raised the country’s economic growth forecast, saying the gross domestic product of the country would grow by seven percent this year instead of the previous projection of five percent made in April, in a new report published last Wednesday.