Deputy Economy Minister: growth in September boosted by surge in exports, tourism revenues

Georgian Deputy Economy Minister Vakhtang Tsintsadze on Thursday said the domestic economic growth of 8.3 percent in September had been driven by exports and tourism revenues. Photo: Ministry of Economy

Agenda.ge, 31 Oct 2024 - 15:39, Tbilisi,Georgia

Georgian Deputy Economy Minister Vakhtang Tsintsadze on Thursday said the domestic economic growth of 8.3 percent in September had been driven by exports and tourism revenues.

He noted exports surged by 17 percent last month, surpassing a volume of $615 million, while tourism revenues in the third quarter hit a “record high” of over $1.560 bln.

Overall, the country’s macroeconomic fundamentals are strong, with a high rate of economic growth and increasing foreign exchange inflows”, Tsintsadze said.

The Deputy Minister also shared an upward trend in the turnover of VAT-paying enterprises, which saw an increase of 11.6 percent in September compared to the same month last year. Additionally, the number of new enterprise registrations rose to 6,405, reflecting a 4.6 percent increase from September 2023.

Tsintsadze highlighted despite facing “external shocks and geopolitical tensions”, the Georgian economy remained “stable”, buoyed by “prudent” macroeconomic policies.

The Deputy Minister also pointed out Government initiatives aimed at enhancing the competitiveness of small and medium-sized enterprises, attracting investments, and developing agriculture and infrastructure were making “substantial contributions” to economic activity and employment growth.

He noted inflation remained below target, averaging around one percent for the year, indicating “structural improvements” in the economy.

Tsintsadze forecast the “positive” economic trends observed over the past four years would continue.

International financial institutions, including the International Monetary Fund, have recently revised their economic growth forecasts for Georgia upward. We are projected to have the highest growth not only in our region but among European countries in 2024”, he said.

In the medium term, from 2025 to 2029, Georgia is expected to maintain its leadership in economic growth within the region and among European countries, achieving a rate of 5.2 percent”, Tsintsadze added.

The Deputy Minister reaffirmed the Government’s commitment to sustaining the “positive trends” and “improving the living standards of the population” while aiming to bring Georgia closer to development benchmarks of the European Union.