Investment and Growth Strategy
REAL GDP UP BY 7.2% IN 1Q23
PRELIMINARY ECONOMIC GROWTH STANDING AT 7.2% Y-O-Y IN 1Q23, FOLLOWING UP ON TWO
YEARS OF DOUBLE-DIGIT EXPANSION (10.5% AND 10.1% IN 2021-2022 RESPECTIVELY)
50%
45%
GEORGIA
CAPITAL
ECONOMIC GROWTH REMAINS STRONG
40%
30%
20%
10%
4%
0%
-10%
-20%
-5%
-12%
26%
19%
18.0%
14.6%
12%
10% 10%
10.6%
11.6%
10%
7% 7%
7.2%
9.7% 10.5% 8.8% 8.3% 9.3%
11.0%
Jan-21
Feb-21
Mar-21
Apr-21
May-21
Jun-21
Jul-21
Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Jan-22
Feb-22
Mar-22
2.6%
Apr-22
May-22
Jun-22
Jul-22
Nov-22
Dec-22
NOMINAL GDP IS EXPECTED TO CONTINUE ACCELERATING BOTH IN GEL AND USD TERMS
8.4%
5.8%
7.3%
Jan-23
Feb-23
Mar-23
I Nominal GDP, USD bn (LHS) OGDP Per Capita, GEL (RHS) --GDP Per Capita, USD (RHS)
Strong external demand supplemented by the migration effect,
as remittance inflows grew by 130% y-o-y in 1Q23, largely on
the back of a surge in inflows from Russia, while merchandise
exports increased by 25% y-o-y, and tourism revenues reached
138% of 2019 levels in 1Q23;
Continued credit expansion (up 13.8% y-o-y in March w/o the
exchange rate effect) both in retail and business sectors as well
as both in GEL and foreign currency, despite the tight
monetary stance and rising FX interest rates, aiding economic
activity;
I Nominal GDP, GEL bn (LHS)
90
80
70
60
50
40
30
20
10
2010
2011 2012 2013 2014
2015 2016 2017 2018 2019 2020 2021 2022 2023F*
Georgia Capital PLC | Source: Geostat, Georgia Capital estimates (*)
25
Current expenditures growing by 10.6% y-o-y and capital
expenditures rising by 14% y-o-y in 1Q23, facilitated by a
12.4% y-o-y growth in fiscal revenues;
20
15
Strong business sentiment supporting spending and
investment decisions;
10
5
➤ As a result of the improved macroeconomic environment, Fitch
Ratings revised Georgia's sovereign credit rating outlook to
positive from stable in January 2023.
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