Deputy Economy Minister: Georgia’s 7.6% growth forecast by IMF outpaces EU candidate nations, neighbouring countries

The International Monetary Fund has upgraded its economic growth forecast for Georgia to a 7.6 percent for 2024,  surpassing the  rates of European countries and the country's regional neighbours, Vakhstang Tsintsadze, the Deputy Economy Minister of Georgia, said on Wednesday.

In its October 2024 World Economic Review, the IMF forecast Georgia’s GDP growth to continue to sustain momentum, with projections showing a six percent  rate for 2025.

Tsintsadze emphasised the significance of the forecast, noting the anticipated domestic  growth in 2024 was 2.5 times greater than the average growth rate of other EU membership candidate countries.

The Government’s objective is not only to maintain a high rate of economic growth, but also to minimise the gap between living standards in Georgia and those in EU countries”, he said.

The Deputy Minister highlighted ongoing efforts by the Government to bolster economic expansion, including the implementation of key infrastructure projects and initiatives aimed at enhancing business competitiveness.

Due to all the factors mentioned, we expect to sustain the economic growth seen in the country over the past three years”, he added.

The IMF also projected Georgia’s GDP per capita would reach about $8,882.6 this year, with purchasing power parity equivalent to $27,363.4. By 2029, the figure is expected to rise to $12,734.2, positioning Georgia at 52.5 percent of the average GDP per capita in EU countries.

The World Bank last Thursday projected the Georgian economy to grow by 7.5 percent this year - “well above the potential level” - as well as 5.2 percent in 2025 and five percent in 2026.

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