Diversified Resilient Economy
- Diversified non-commodity reliant economy with consistently high GDP growth across the last decade.
Top-ranked in economy environment indices
- Seventh in "Ease of Doing Business" (2020).
- 2nd in regulatory quality, 3rd in government effectiveness and 4th in control of corruption indices among upper-middle income countries (World Bank, 2022).
- Low corruption and bribery risk (Transparency International, 2023 and Trace International, 2023).
Investment-led GDP growth
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Development of large public infrastructure programmes backed by multilateral international funding driving potential GDP growth.
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Infrastructure expenditures have reached record-high levels in 2019-2022 and stood at 6.6% of GDP in 2022, with public investment set to continue supporting growth in the medium run.
- The resilience and flexibility of the Georgian economy have been underscored by two consecutive years of double-digit economic growth, as the economy expanded by 10.6% y-o-y and 11.0% y-o-y in 2021 and 2022 accordingly. Georgian economy continues to expand robustly with preliminary 2023 growth rate at 7.5%.
Historically low inflation with 3% target set from 2018 by National Bank of Georgia
- Inflation, like elsewhere around the world, was elevated during 2021-2022, however, Inflation has sharply reduced in 2023, falling below the target since April 2023, with annual average inflation standing at 2.5% in 2023. In January 2024, headline inflation printed at 0.0%. Considering the latest inflation downward trend NBG has begun a gradual exit from tight monetary policy and reduced the policy rate by 200 bps during May 2023-January 2024 to 9.0%.