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Georgian Economy Saw 7.5% Growth in May

According to preliminary estimations by Geostat, national statistics service of Georgia, in May 2018 Georgian economy grew by 7.5% and this is one of the highest figures under the ruling of Georgian Dream.

According to Geostat, in January-May the economic growth constituted 6.1%, up 1.6% compared to the government’s forecast indicator.

According to preliminary estimations, in May 2018, as compared to the same period of 2017, considerable growth was recorded in the fields of transport, processing industry, commerce, finances, hotels and restaurants.

In January-May 2018, imports rose y 23% and exports increased by 28%, while total external trade exceeded the figure of the same period of 2017 by 24%. At the same time, turnover of taxpayer companies increased by 17.6% and this factor has additionally affected economic growth indicators.

Economic growth due to months is as follows: January – 4%, February – 5.5%, March – 5.6%, April – 6.5%, May – 7.5%. Averaged growth in January-May constituted 6.1%.

As to the past years, in 2017 Georgian economy increased by 5%. In 2016 economic upturn constituted 2.8%. Starting 2010 Georgia’s averaged economic growth was 6.1%,however, after 2013 the growth pace decelerated and made up 3.3% instead of 6%. If GDP growth paces in 2010, 2011 and 2012 was 6.2%, 7.2% and 6.4% respectively, in the next years GDP growth rate decelerated twice and even monthly indicator did not exceed 7% since 2013. For example, in 2013 Georgian economy increased by 3.4%, in 2014 – 4.6%, 2015 – 2.9% and 2016- 2.8%.

This indicator proves that Georgian government carries out proper economic policy. This fact also proves that the reforms that we have implemented and announced shapes the environment, where economic growth paces will be further accelerated definitely. It should be also noted that the qualitative effect of economic growth has also improved. First of all I would like to note that exports has increased by 50% compared to the same period of 2017 and this is one of the crucial factors for economic growth promotion», Prime Minister Mamuka Bakhtadze noted when talking about the 7.5% upturn in May 2018.

«Geostat has published an early report on  economic growth in May 2018, which hit record figure over the past years -7.5%. Economic growth paces have considerably increased according to the January-May indicators. We have recorded a crucial rise in the sectors of transport, processing industry, trade, finances, hotels and restaurants.

Publication of this indicator coincided with the fact the board of directors of International Monetary Fund (IMF) approved the second review of Extended Fund Facility program.

Dear friends, I would like to tell you that  these results were achieved thanks to tireless job by both former and current officials of Georgian Government. I would like to thank everybody, who have contributed to making our reforms irreversible. And IMF has proved its support and this is recognition of our economic policy. The program that IMF has approved and appraised as an accelerator of Georgia’s inclusive economic growth must be continued and developed. The ongoing and coming reforms aim to make Georgia an European-level country in long-term perspective.

Once again I congratulate all of you on the 7.5% real economic growth in May. Figures have changed in my CV too. We started with 2.6% and reached 7.5%. Let’s move to two-digit growth», Dimitri Kumsishvili posted on how on social network wall.

By Merab Janiashvili
Economic Analyst
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