According to preliminary estimates, compared to the corresponding period of the previous year the average growth of real GDP rate amounted to 5.9% in 9 months of 2014 while, in the third quarter of 2014 – 5.5%.
According to recent data, the country’s economy is in stagnation and GDP decline is being observed since July. In particular, GDP grew by 7.2% in July, by 5.2% in August and 4.1%- in September. Nevertheless, the Minister of Finance said last week during a meeting with businessmen that expectations for the economy was positive, the economy had grown by 6% and growth of 5.5- 6% would be maintained by the end of the year.
He notes that the growth was not caused by state spending, but rather by growth in the construction sector which amounted to 16.5%.
The government estimates that Georgia’s economy will grow by 5%. The IMF agrees with these calculations while EBRD predicts that the country’s economy will grow by 4%.
In the light of economic growth, for 9 months of 2014 the state budget was executed by 99.49% in the revenues side compared to the 9-month plan and amounted to GEL 6.5 billion while in the tax side the budget was executed by 91.6% and totaled GEL 6.18 billion.
As of 1 October 2014, the balance of the state budget on the state treasury accounts amounted to GEL 625 886.6 thousand; from here: free balance – GEL 625 296.1 thousand; financial resources as grants to finance projects (“Protected Areas Development”) – GEL 590.5 thousand.
During the reporting period, the change in the budget balance (accumulation) amounted to GEL 338 740.3 thousand.
In January-September 2014 revenues to the state budget amounted to GEL 5.36 billion from (101% of the nine –month plan); expenditures amounted to GEL 5.2 billion (93.9% of the nine-month plan).
In January-September 2014, the total balance of the state budget, including revenues and expenditures, totaled GEL 181.85 million (a nine-month plan envisaged GEL 737.31 million).