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 6th in control of corruption indices among upper-middle income countries (World Bank, 2021).
- Low corruption and bribery risk (Transparency International, 2021 and Trace International, 2021).
Investment-led GDP growth
Development of large public infrastructure programmes backed by multilateral international funding driving potential GDP growth.
Infrastructure expenditures have reached record-high levels in 2019-2021 and are planned at another high of 8.8% of GDP in 2022, with public investment set to continue supporting growth in the medium run.
- Economic resilience has been underscored by a double-digit real GDP rebound of 10.6% in 2021, as the economy also overtook its 2019 level by 3.2%. Real GDP growth reached 10.4% in 1Q22, maintaining pace.
Historically low inflation with 3% target set from 2018 by National Bank of Georgia
- Inflation, like elsewhere around the world, was elevated at an annual 9.6% in 2021 due to the COVID-19-induced supply side pressures and swiftly recovering domestic demand, with the National Bank of Georgia tightening the monetary stance (monetary policy rate highest since 2008 at 11% as of May 2022) and reaffirming commitment to achieving the 3% inflation target. With the Russia-Ukraine war exacerbating inflationary pressures, inflation is expected to slowly decelerate but remain above the target during 2022.