City next to a river in Georgia

Georgia Economic Forecast

Georgia Economic Outlook

Economic activity growth cooled to 5.7% year on year in July–August after GDP expanded 7.5% in Q2. Rising output in the construction, financial and trade industries drove the overall expansion in July–August. Meanwhile, manufacturing activity rebounded in August after shrinking in July. Less positively, activity contracted in the information and communication sector, thus weighing on the overall upturn. Externally, imports growth markedly outpaced that of exports in Q3. This, coupled with lower inflation and a less-restrictive monetary policy backdrop, signals stronger spending and investment growth in Q3. In other news, looming political tensions continue to hurt the business environment; deep political divisions and a complicated relationship with Russia prompted an impeachment attempt—which failed—of President Zourabichvili in mid-October.

Georgia Inflation

Inflation ticked down to 0.7% in September from 0.9% in August. Cooling price pressures for miscellaneous goods and services, hospitality and education drove the decrease. Additionally, prices for health and transport continued to decline notably at the end of Q3. Inflation should average close to the Central Bank’s target of 3.0% next year on lower interest rates.

This chart displays Economic Growth (GDP, annual variation in %) for Georgia from 2013 to 2022.

Georgia Economic Data

2018 2019 2020 2021 2022
Population (million) 3.7 3.7 3.7 3.7 3.7
GDP (USD bn) 17.6 17.5 15.8 18.7 24.7
GDP per capita (USD) 4,718 4,694 4,262 5,002 6,685
GDP (EUR bn) 14.9 15.6 13.9 15.7 23.4
GDP per capita (EUR) 3,997 4,191 3,730 4,218 6,338
GDP (GEL bn) 44.6 49.3 49.3 60.0 71.8
Economic Growth (Nominal GDP, ann. var. %) 9.4 10.4 0.0 21.8 19.6
Economic Growth (GDP, ann. var. %) 4.9 5.0 -6.7 10.5 10.2
Unemployment (% of active population, aop) 19.3 17.6 18.5 20.6 17.3
Fiscal Balance (% of GDP) -0.8 -1.8 -9.3 -6.0 -2.6
Public Debt (% of GDP) 38.9 40.4 60.2 49.7 39.8
Inflation (CPI, ann. var. %, aop) 2.6 4.9 5.2 9.6 11.9
Refinancing Rate (%, eop) 7.00 9.00 8.00 10.50 11.00
Exchange Rate (GEL per USD, eop) 2.68 2.86 3.29 3.09 2.70
Exchange Rate (GEL per USD, aop) 2.53 2.82 3.11 3.22 2.91
Exchange Rate (GEL per EUR, eop) 3.06 3.21 4.02 3.51 2.88
Exchange Rate (GEL per EUR, aop) 2.99 3.15 3.55 3.80 3.06
Current Account Balance (USD bn) -1.2 -1.0 -2.0 -1.9 -1.1
Current Account Balance (% of GDP) -6.8 -5.9 -12.5 -10.4 -4.5
Merchandise Trade Balance (USD bn) -4.1 -3.8 -3.2 -3.8 -5.1
Merchandise Exports (USD bn) 4.4 4.9 4.3 5.5 7.5
Merchandise Imports (USD bn) 8.5 8.7 7.5 9.3 12.6
Merchandise Exports (ann. var. %) 23.4 12.2 -12.1 27.4 36.0
Merchandise Imports (ann. var. %) 15.5 2.5 -14.0 24.2 35.5
Foreign Direct Investment (USD bn) 1.4 1.4 0.6 1.2 2.0
International Reserves (USD bn) 3.3 3.5 3.9 4.3 4.9
International Reserves (months of imports) 4.6 4.8 6.2 5.5 4.7
External Debt (USD bn) 17.3 18.8 20.1 22.1 -
External Debt (% of GDP) 98.5 107.3 126.8 118.2 -

Free Sample Report

Interested in Georgia economic reports, analysis and data? FocusEconomics provides data, forecasts and analysis for hundreds of countries and commodities. Request your free sample report now.

Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest