Page 13 - Caucasus Outlook 2024

Nominal GDP (USD bn) 15.1 16.2 17.6 17.5 1 15.8 18.6 2 24.8 30.3
Real GDP (% yoy) 2.9% 4.8% 4.8% 5.0% -6.8% 10.5% 10.4% 6.8%
Industrial output (% yoy)
Unemployment rate (avg, %)
Nominal industrial wages (% yoy)
Producer prices (avg, % yoy)
Consumer prices (avg, % yoy)
Consumer prices (eop, % yoy)
General budget balance (% of -2.8% -2.7% -2.3% -2.1% -9.3% -6.1% -3.0% -2.8% GDP)
Public debt (% of GDP) 40.3% 39.4% 38.9% 40.4% 60.2% 49.7% 39.5% 38.4%
Current account balance (% of GDP)
Official FX reserves (USD bn)
Gross foreign debt (% of GDP)
USD/LC (avg)
USD/LC (avg)
Source: Thomson Reuters, RBI/Raiffeisen RESEARCH
2.1.1 GDP growth
In the first 10 months, between January and October 2023, Georgia’s
economic growth reached an impressive 6.9%.
Growth can be attributed primarily to substantial foreign exchange inflows and increased purchasing power resulting from a decrease in inflation. The stable exchange rate of the local currency, the lari, has further enhanced consumer and business sentiments, accelerating both business activity and private sector consumption.
Galt & Taggart forecasts Georgia's economy to grow by 6.8% in 2023, propelling the size of the economy to GEL80 billion (USD30 billion). The GDP per capita is projected to reach $8,108, positioning Georgia as a leader in the Caucasus region.
The International Monetary Fund (IMF) said in October it anticipates a 6.2% growth in 2023, a notable increase from the 4% projected in April. The World Bank expects a 5.9% real economic growth for Georgia in the current year.
Looking forward to 2024, the IMF is projecting a 4.8% growth for the country. However, recent developments, such as the suspension of the IMF
13 Central Asia & Caucasus Outlook 2021 www.intellinews.com