Economic Growth in Georgia
Annual economic activity growth averaged 7.2% in Q1, down from the 9.7% expansion in Q4. The deceleration was chiefly driven by slowing domestic activity due to a weaker performance in the manufacturing and real estate sectors. Meanwhile, high inflation and interest rates likely bit into investment and private spending growth. More positively, stronger merchandise exports growth boded well for the external sector. Turning to Q2, economic conditions seem to be improving. Economic activity jumped 7.5% annually in April, as strong growth in exports, plunging inflation and a less restrictive interest rate all supported overall momentum. In other news, Georgia recently reinstated air travel with Russia and spoke out against sanctions on the Kremlin, drawing criticism from the West and fueling protests at home. These developments bode poorly for the country’s EU accession goals.
Georgia Economic Growth Chart
Georgia Economic Growth Data
|Economic Growth (GDP, ann. var. %)||4.8||4.9||5.0||-6.7||10.5|