Economic Monitor Georgia

WA 20 | Oktober 2024

2024: real GDP estimated to grow by 8.5%, still strong after three years of very high growth
Major driver of growth in 2023/2024: consumption and public investments, with tourism and transport as key sectors
Lariremains relatively stable around 2.70 GEL/USD; National Bank intervened after 7% depreciation in May/June
Inflation remains below the target rate (3%) in 2024, Sep-24: 0.6% yoy
Only gradual easing of monetary policy as inflationary risks still present
Money transfers from Russia continue to decline, now close to pre-relocation level
Goods exports and imports increasing only slightly as goods trade continues to normalise
Services exports slightly growing, driven by more moderate increases in tourism and transport
Public finances stable, budget deficit at 2.5% of GDP in 2023 and expected at a similar level in 2024/2025; public debt stabilising around 37% of GDP

Goods exports to the EU.Stagnating exports despite DCFTA, non-tariff barriers as key factor
Goods trade with RUS since war in UKR.Moderate increase in exports, oil products drive imports