City next to a river in Georgia

Georgia Economic Forecast

Georgia Economic Outlook

Economic activity growth cooled to 5.5% year on year in Q3 from 7.4% in Q2. Rising output in the construction, financial and trade industries drove the overall expansion in Q3. In addition, tourism activity saw an almost 20% increase year on year, while multi-year low price pressures and lower interest rates should have supported private spending. However, activity contracted for most of the quarter in the manufacturing, transportation, real estate and communication sectors. Turning to Q4, our Consensus forecasts slowing growth, though available data is limited. In October, annual increase in exports outpaced imports growth—which dropped to a 32-month low—while inflation stayed downbeat. On 8 November, the European Commission formally recommended EU candidacy be granted to Georgia; the structural reforms required to join the EU are expected to promote growth and economic stability.

Georgia Inflation

Inflation ticked up to 0.8% in October from 0.7% in September. Rising price pressures for transport, health, and alcoholic beverages and tobacco drove the increase. Additionally, prices for housing and utilities, and miscellaneous goods and services continued to rise notably. Inflation should average around the Central Bank’s 3.0% target 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