September GDP Growth 2.2% – Preliminary Data

Georgia’s real GDP grew 2.2% year-on-year in September with the growth in the third quarter of this year standing at 2.5%, according to preliminary data released by the state statistics office on October 30.

Economy grew 2.7% y/y in the first nine months of 2015, according to the preliminary data. GDP growth in the same period of last year stood at 5.9%.

Georgia’s 2015 state budget was amended in July, cutting economic growth forecast for this year from initially targeted 5% to 2%. The draft budget for 2016 projects 3% economic growth for next year.

In early October, Fitch ratings agency affirmed Georgia’s outlook as stable with country’s sovereign rating BB-, three notches short of investment grade. The rating agency said that external finances remain a key credit weakness. Outlook on Georgia was revised by Fitch down from ‘positive’ to ‘stable’ in April, 2015.