February GDP Growth 4.9% – Preliminary Data

Georgia’s real GDP grew 4.9% year-on-year in February after only 0.5% y/y growth in January, according to preliminary data released by the state statistics office on Tuesday.

Economy grew 2.7% y/y in the first two months of this year.

After a significant slowdown in January and amid depreciation of national currency lari, the government announced in February about the intention to revise downward its economic growth forecast from 5% to 2%.

But in an interview with the Georgian daily Rezonansi last week, Finance Minister Nodar Khaduri said that February was “active”, there “are no problems” in meeting tax revenue targets and the government will wait for the first quarter results before taking final decision whether to propose “comprehensive” amendments to the state budget.

International Monetary Fund (IMF) said on March 4 that amid “severe external shocks”, Georgia’s economic growth could reach only 2% this year, but even this projection is subject to risks.

Georgia’s economy grew 4.7% last year, short of government’s 5% forecast, according to preliminary data.