According to the Georgian Prime Minister, the Government of Georgia has updated its economic growth forecast for 2021 and is now expecting growth in the double-digits as Georgia’s nominal GDP is set to rise by 10% as the economy continues to rebound from the COVID-19 pandemic and as Georgia continues to make progress in its fight against corruption.
“The real economic growth for 9 months amounted to 11.3%. The economic growth forecast is revised and we assume that we will have double-digit economic growth this year,” the Prime Minister said in a statement.
The strong economic growth in Georgia is powered by government spending, robust commercial lending and trade growth, and the continued recovery of the tourism industry. In September Georgia’s economy grew by 6.9% y/y, while real GDP was up by 6.1% compared to the September 2019 level.
Georgian exports are also experiencing a renewed boom, as between January and September of this year there was a 24% y/y increase that totaled to $2.98 billion in value. According to the National Statistics Office of Georgia (Geostat), “The share of domestic exports (export of locally produced goods and services, including those of foreign origin that have been substantially changed through local processing) in total exports constituted 72.7% and amounted to $2.16 billion, 25.9% higher to the same period of 2020.”
In the fight against corruption, the Georgian government has continued to make remarkable strides. On the Global Risk Profile’s 2021 Global Corruption Index, Georgia advanced by nine in ranking from 2020, and is now ranked above nine EU and/or NATO member states. Ilia Darchiashvili, the head of the Administration of the Government, stated that Georgia’s advancement on the list represents an ‘important impetus’ to continue implementing anti-corruption reforms in the country.
The Prime Minister further stated that the Georgian government would “be solely focusing on work, by investing our time and efforts round the clock -24/7 – for the benefit of our people and our country.” As Georgia continues to rebound from the COVID-19 pandemic, these strong economic indicators highlight the successful record and future trajectory of the Georgian economy.