Levan Davitashvili: All the indicators of economic growth in Georgia illustrate that the positive trends of last year should continue in 2023

“The trend of economic growth in 2022 continued in the month of December last year. Economic growth in December was 11% and the final annual economic growth was recorded at 10,1%. This is preliminary data, but we have high hopes that the data will be adjusted towards growth,” –  Vice Prime Minister, Minister of Economy and Sustainable Development state while commenting on last year’s economic indicators.

According to Levan Davitashvili, the economic growth was mainly caused by the economic activity in several sectors, among them the recovery of the tourism sector was important, where the revenues amounted to 3,5 billion USD. Exports were also quite important, which was recorded at 5,6 billion USD – this is a historically record figure. In addition, according to the Minister of Economy, it is important that the economic activity was much diversified - both in the field of transport and warehouse logistics, and in construction in the direction of real estate, as well as in services and production.

It should be noted that the rating company the Fitch improved the perspective of Georgia’s sovereign credit rating from stable to positive, while leaving the rating unchanged at "BB" level. According to the report of the rating company, the main determinants of Georgia’s rating and positive outlook are reliable and effective policies and indicators of better economic development and strong governance compared to other countries with the “BB” rating.

“We can say that all this points to the stability of Georgia’s economy, despite external shocks. In evaluating the economic growth, the international rating company Fitch kept Georgia’s sovereign rating at the "BB" level, but with a positive outlook. This suggests that if we maintain positive trends in 2023, our sovereign rating will improve during the next assessment. Our expectation is that we should maintain positive trends, based on the fact that the economic growth in 2022 was not only in one specific direction, but, as we said, it is quite diversified and covers many sectors,” – the Minister of Economy noted.

Levan Davitashvili also emphasizes and cites as one of the important factors that the turnover of VAT-paying enterprises increased by 18,1% last December. In addition, tourist activity increased in December - revenues from the tourism sector amounted to 555 million USD. An increase was also observed in the direction of remittances – foreign currency transfers in Georgia amounted to 535 million USD.

“All the indicators of economic growth in Georgia illustrate that the positive trends of last year should continue in 2023,” –the Minister of Economy commented.

Ministry of Economy and Sustainable Development of Georgia. © 2021