Georgia’s real GDP grew 5.2% in January year-on-year, the strongest growth rate since 2014, according to preliminary data released by the state statistics office on February 28.
Stressing that January was “a very successful” month “that can only be welcomed,” Prime Minister Giorgi Kvirikashvili, who commented on the matter at the Cabinet’s March 2 session, stated that the country “has a very good start [in 2017].”
According to Kvirikashvili “a number of very important figures” have contributed to the growth rate.
“Export increased by 44.7% in January y/y … VAT turnover increased by almost 21%; newly registered enterprises increased by 33%. Tourism figures have also gone up,” Kvirikashvili clarified.
The Economy Ministry explained on February 28 that the growth rate was mainly preconditioned by increased export, remittances (26.1% y/y increase) and international visitors (19.8% y/y increase), as well as the rise in the state’s capital expenditures “due to the accelerated infrastructural projects.”
On February 28, Zurab Chiaberashvili of the Movement for Liberty – European Georgia stated that the year-on-year comparison “is no reason to be content with,” since the growth rate in January 2016 was almost non-existent (0.8% growth).
“With such a growth rate, Georgia will remain to be a poor country for decades and a big part of its citizens will be unable to overcome poverty,” he added.
The estimated annual growth of real GDP stood at 2.2% in 2016, the weakest growth rate since 2009. Georgia’s economy expanded by 2.9% in 2015, lower than 4.6% in 2014, 3.4% in 2013 and 6.4% in 2012.
The Government forecasts 4% economic growth in the 2017 state budget.