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, 2022 and Trace International, 2022).
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 2019-2022 and stood at 6.7% 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 10.5% y-o-y and 10.1% y-o-y in 2021 and 2022 accordingly. Despite the global slowdown, Georgian economy continues to expand robustly with preliminary 1Q23 growth rate at 7.2%.
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 11.9% in 2022, as the Russian invasion of Ukraine exacerbated residual price pressures induced by the COVID-19 shock. However, inflation went back to single digits in December 2022 amounted to 9.8% and continued decelerating trend in 2023, with April headline number falling below the 3% target (2.7% y/y). The National Bank of Georgia has started gradual exit from the tight monetary policy and reduced the policy rate by 50 bps to 10.50% as of May 2023.