TBILISI, GEORGIA (21 September 2022) — Georgia’s economy is expected to grow 7.0% in 2022, driven by higher export and tourism revenue, a large inflow of money transfers, and strong private consumption, the Asian Development Bank (ADB) said in a report today.
According to an update of the Asian Development Outlook (ADO) 2022, ADB’s annual flagship economic publication, Georgia’s real gross domestic product (GDP) growth is projected to be 6.0% in 2023. Last April, ADB forecast growth of 3.5% in 2022 and 5.0% in 2023 in Georgia despite heightened geopolitical risks from the ongoing Russian invasion of Ukraine.
“Georgia has seen significant growth in tourism and exports which indicates that the country is overcoming the adverse effects of the pandemic,” said ADB Country Director for Georgia Shane Rosenthal. “ADB supports Georgia’s infrastructure and social development to lower market access costs and improve economic opportunities. Georgia could also benefit from ensuring a conducive business environment to attract sustained investments, and promoting technology and innovation in the business and agriculture sectors.”
According to the update, services increased by 15.3% following gains in accommodation, food services, trade, transport, and real estate. Industry expanded by 18.0% led by manufacturing and utilities, while agriculture grew by 2.3% due to favorable weather and a good harvest.
Inflation is projected to accelerate to 11.0% in 2022 before slowing to 5.0% next year, following on higher-than-expected global commodity prices and strong domestic growth.
The fiscal deficit is projected to fall from 6.1% in 2021 to less than 4.0% in 2022, thanks to solid economic growth and the gradual unwinding of pandemic response measures. Public debt has declined from the equivalent of 49.5% of GDP to 47.0%, reflecting partly reduced public borrowing.
The current account deficit widened slightly from the equivalent of 12.5% of GDP in the first quarter of 2021 to 13.0% a year later.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.