Economic Growth of 5,2% Recorded in January 2017

Economic Growth of 5,2% Recorded in January 2017

Economic Growth of 5,2% Recorded in January 2017

The FINANCIAL -- “Economic growth in January 2017 equals to 5,2%, which is the highest figure during the recent period,” – Deputy Minister of Economy and Sustainable Development, Nino Javakhadze stated at the press-conference.

 According to the Deputy Minister, the higher figure, compared month to month, was only detected in January 2014.

“In the view of sectoral growth, the economic growth was recorded in such fields as metallurgy, hotel and restaurant business, etc. Significant increase was recorded in the amount of the export, which through foreign channels, have a positive impact on the Georgian economy and is one of the factors contributing to economic growth of the country,” – Nino Javakhadze told the media.

Deputy Minister also highlighted the growth in the money transfers amounting to 26,1% and in the number of foreign tourist with 19,8%, according to Ministry of Economy and Sustainable Development of Georgia.

“Internal factors having positive impact on the economic growth should also be noted. We have increased state capital expenditure due to the accelerated infrastructural projects within the Government 4-point plan. We can witness the improvement of the general economic environment in the region and we believe this will have only positive effects on the economic growth and development of Georgia,” – Nino Javakhadze noted.

Some more figures:

5,2% economic growth is one of the highest indicators since 2012, compared to the relevant periods. The higher figure was achieved in January 2014 with 7,8% economic growth.

High economic growth was mainly preconditioned by the growth of the foreign trade, since the total export in January 2017 is by 45% higher compared to the same indicator of January 2016.  

The main reason of the economic growth is the increased export of metallurgical products, mineral and chemical as well as nitrogen fertilizers. Increased export of food products and beverages was also recorded.

Together with the improved international trade, in January 2017, other factors contributing to the economic growth were also improved, including: 

by 26,1% increased money-transfers (which is one of the important components of the domestic demand) with the total volume of 226,7 million GEL;

19,8% increase number of international travelers (visitors) to Georgia which reached 387 070 people. It also includes the number of tourist (over 24 hour-stay) which is increased by 32,4%.

Increased state capital expenditure due to the accelerated infrastructural projects within the Government 4-point plan is also a great contributor to the economic growth.

In January 2017, he total turnover of the companies registered in Georgia, compared to the same data of the pervious year, is increased by 20,7%, which is 13% higher that the growth indicator in January 2016 (7,7%).

In January 2017, 3625 new companies were officially registered, which means that the number of newly registered companies have increased by 33% compared to the same period of the pervious year.