Georgia: Preliminary Assesment of Economic Growth – September, 2017

Georgia: Preliminary Assesment of Economic Growth – September, 2017

Georgia: Preliminary Assesment of Economic Growth – September, 2017

The FINANCIAL -- According to the preliminary data, in September 2017, compared to the same period of 2016, the real GDP growth of 5.0% is recorded. The mean GDP growth in first 9 months of 2017 equals to 4.5%.

In September 2017, the total turnover of the enterprises registered in Georgia (the companies which are being observed for evaluation of the economic growth), compared to the same period of 2016, is increased by 18%, according to Ministry of Economy and Sustainable Development of Georgia.

In September 2017, the significant real GDP growth was recorded in the following sectors:

processing industry;
construction;
trade;
production and distribution of electricity, gas and water;
hotels and restaurants.

High economic growth of September was predetermined by Georgia’s improved foreign trade indicators and increased export. In September 2017, the increase was recorded in the following sectors of the export:

Alcohol drinks by 41%;
Mineral and fresh waters by 55%;
Nitrogenous fertilizers 149%.

N.B. It should be noted that in January-September 2017, the volume of the export from Georgia is increased by 28.3% and amounted to 1940.8 million USD.

The increase in export is mainly related to the improved economic conditions in the economies of our main trading partners, which encouraged increased demand on exported goods.

Besides the international trade, in September 2017, other factors also contributed to the economic growth including the following:

Revenues from the international tourism are increased by 25.2% and amounts to 304.1 million USD, which means that the positive trend regarding the export of service is maintained in September as well;

Money transfers are increased by 24.2% and amounted to 124.4 million USD. Money transfers are one of the most important components of the domestic demand and the growth of this indicator will have positive impact on the economic growth.