Georgia Economic Growth (Nominal GDP, ann. var. %)

The economy finished last year on a high note after annual GDP growth accelerated in Q3 2023. Economic activity jumped 11.0% year on year in December, marking the strongest expansion since May and bringing average growth in the quarter to 9.5%. This was largely thanks to strong expansions in the construction, finance, hospitality, trade, and information and communication sectors. Moving into 2023, activity growth eased to 8.4% in January due to weaker output in the manufacturing and energy sectors. That said, falling inflation and a strong lari should have supported private spending, while sustained exports growth hinted at a resilient external sector at the outset of the year. In other news, political instability risks heightened after protests erupted following parliamentary committee hearings over a controversial “foreign agents” bill, which has drawn criticism domestically and abroad.