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Panorama econòmic

Economic indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Georgia is a transition economy influenced by its past affiliation to the Soviet Union. Economic growth in recent years was boosted by rising domestic and external demand, resulting in higher consumption, exports, tourism and remittances. Covid-19 halted demand growth while weighing on the burgeoning tourism industry in 2020, with GDP contracting by an estimated 6.2%. However, GDP rebounded 7.7% in 2021, fuelled by private consumption (75% of GDP) and expatriate remittances (estimated at 11% of GDP in 2021). The IMF forecasts a growth of 5.8% this year, followed by 5.5% in 2023.

General government debt, which had already shown an upward trend in recent years as a result of public infrastructure spending, expanded further in 2020, as the government stepped up social and capital spending as part of a Covid-19 response package. In 2021, the government managed to reduce the deficit to 3.3% of GDP thanks to an increase in revenue prompted by enhanced taxation. The deficit is forecast at 0.4% of GDP in 2022 before the budget turns positive the following year (+0.6%). Albeit relatively low, public debt is heavily denominated in foreign currency (42%). After increasing by more than half following the outbreak of the Covid-19 crisis, the debt-to-GDP ratio returned to a downward trend in 2021 (54.2%) and is expected to remain relatively stable over the forecast horizon. An increase in oil and food prices, coupled with a weak lari, pushed average inflation at 9% in 2021. In response, the National Bank of Georgia (NBG) hiked its policy rate by 100 basis points to 10.5% by the end of the same year. A tighter monetary policy should help bring inflation closer to the 3% target by 2023. Given Georgia’s small and open economy, the lari exchange rate remains very volatile, often eroding household purchasing power.

The Georgian unemployment rate rose rapidly in 2021, reaching 20.6% of the active population (GeoStat), its highest level since 2017. Prior to Covid-19, poverty had been almost halved as a result of social policies and economic growth (19.5% of the population was living below the national poverty line in 2019, according to the latest figures from GeoStat). Inequalities remain high compared to other economies in the region, with low levels of education, and a rural population (40.5% of the total – World Bank).

 
GDP Indicators 201920202021 (e)2022 (e)2023 (e)
GDP (billions USD) 17.48e15.89e17.8519.6921.58
GDP (constant prices, annual % change) 5.0e-6.2e7.75.85.5
GDP per capita (USD) 4,694e4,275e4,8085,2985,804
General government balance (in % of GDP) -1.0-6.0e-3.3-0.40.6
General government gross debt (in % of GDP) 40.460.0e54.253.652.1
Inflation rate (%) 4.95.2e9.35.43.0
Unemployment rate (% of the labor force) 17.6e18.5e0.00.00.0
Current Account (billions USD) -0.96-1.98e-1.78-1.50-1.34
Current account (in % of GDP) -5.5-12.5e-10.0-7.6-6.2

Font: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated data

 
Monetary indicators 20162017201820192020
Georgian Lari (GEL) - Average annual exchange rate for 1 EUR 2.522.832.993.153.55

Font: World Bank, 2015

 

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Actualitzacions: April 2022

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