Georgia’s growth recovered strongly from the 6.8% contraction in 2020 to an estimated 10.6% growth in 2021. All major sectors did well with exceptions of construction and agriculture. On the supply side, services reversed its 8.1% contraction in 2020 to grow by 14.5%. Industry reversed a 6.6% drop in 2020 to expand by 6.2%. However, agriculture contracted by 2.5% due to pest damage and adverse weather. On the demand side, growth in consumption nearly doubled from 5.4% in 2020 to 9.0% as pandemic restrictions were lifted in the second half of the year. Growth is forecast to decline to 3.5% as the Russian Federation’s invasion of Ukraine slows trade and remittances. It is expected to recover somewhat to 5.0% in 2023 with some revival in demand—both domestic, fueled by faster credit growth, and external, with increased exports the result of structural reform to trade and connectivity.
|Headline Inflation Rate 1||9.9 (Dec22)||10.4||13.9|
|Industrial/ Manufacturing Production Growth Rate 1||14.6 (Sep22)||21.8|
|Merchandise Export Growth 1||14.1 (Nov22)||14.1||9.2|
|Exchange Rate Index 2||149.2 (Dec22)||151.4||172.1|
|1 y-o-y, %.|
2 Monthly average, January 2006 = 100, $/local currency.
|Source: CEIC database.|
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