Economic Monitor Georgia
The Georgian economy grew by 10.1% in 2022, the second consecutive year of double-digit growth. An important factor was the high influx of people from Russia and Belarus, which drove consumption. As a result of this influx, tourism revenues and money transfers also rose strongly. Additionally, increased activity in the transport sector contributed to growth. Growth of around 4.0% is expected for 2023, with the influx of people from Russia and Belarus remaining a determining factor.
Overview
» Real GDP growth of 10.1% in 2022, second consecutive year of double-digit growth
» Key drivers: Relocation of people from RUS and BLR, strong increase in tourism revenues and transport drives consumption and net exports
» Outlook for 2023 positive (4.0%), normalisation after strong previous years
» Tourism revenues exceed pre-pandemic level (108%)
» Strong lari appreciation by 14% during the course of 2022
» Inflation remains elevated (Dec-22: 9.8% yoy), monetary policy remains tight
» Sizeable reduction of current account deficit (5.6% of GDP) due to strong tourism and money transfers
» Lower fiscal deficit (3.1% of GDP), but rather high in light of double-digit GDP growth
Special issues
» Relocation of people from RUS/BLR. Results of new survey and economic implications
» IT sector. Tapping the potential related to the inflow of foreign IT talent
» Goods trade with Russia. Modest increase for exports, oil drives imports
