Georgian economy grew 11% in Q3, says Statistics Office

The National Statistics Office of Georgia on Thursday said the nominal gross domestic product of the country reached ₾24.85 billion ($8.84bln) in the third quarter, while real GDP grew by 11 percent year-on-year, accompanied by a GDP deflator change of 4.3 percent.

In the reporting period, "significant contributions" to the real GDP growth were related to an increase of value added in the following activities:

• Construction (30.9 percent)
• Information and communication (32.8 percent)
• Wholesale and retail trade; repair of motor vehicles and motorcycles (11 percent)
• Education (35.6 percent)
• Financial and insurance sector (22.9 percent)
• Public administration and defence; compulsory social security (14.7 percent)

However, a decrease in the real value added occurred in the real estate sector (-4.9 percent) and electricity, gas, steam and air conditioning supply (-13.6 percent), the Office said.

Several international financial organisations have recently upgraded their economic growth forecast for Georgia.

Fitch Ratings, a global rating agency, this month projected the Georgian economy would grow by 8.7 percent this year, with a moderation to 5.3 percent in 2025 and five percent in 2026, while forecasting inflation will rise to an average of 2.1 percent in 2025 and 2.3 percent in 2026.

In its October World Economic Review, the International Monetary Fund forecast the country’s economy to grow 7.6 percent this year and six percent in 2025.

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 former figure is expected to rise to $12,734.2, positioning Georgia at 52.5 percent of the average GDP per capita in European Union countries.

The World Bank in October 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 would grow by seven percent this year instead of the previous projection of five percent, made in April.