The Georgian gross domestic product (GDP) increased by 5.2% in September compared to the same period of last year, showed the latest data from the National Statistics Office of Georgia (Geostat).
Geostat reported that real GDP grew in January-September 2019 by 5% YoY.
In September the estimated real growth compared to the same period of the previous year occurred in the following sectors: construction, transport, hotels, restaurants and manufacturing.
A decrease was registered in mining and quarrying, in community and in social and personal service activities.
“High economic growth in September is another confirmation of the right and consistent economic policy of the Georgian government, which has been supported by a stable macroeconomic environment, effective reforms and an increase in public capital spending,” said Deputy Economy Minister Ekaterina Mikabadze.
She noted that Standard & Poor’s (S&P) Global Ratings had raised its long-term foreign and local currency sovereign credit ratings on the Government of Georgia to BB from BB-.
“Georgia has maintained comparatively high growth rates over the past few years, even in a challenging external environment”, S&P reported.
“The institutional strength of the country was an important factor in improving the rating. Reforms planned for the current and coming years will help improve the competitiveness of the private sector, which in turn will create new jobs and also make economic growth more inclusive,” Mikabadze said.
Mikabadze noted that important contributor to economic growth wia increasing money transfers, which was one of the key components of domestic demand, and had a positive effect on economic growth.
The amount of money transfers to Georgia in September was $149.8 million, up by 13.9% YoY.
In January-September the value of exports increased by 11.1% and reached $2.72 billion, while imports decreased by 3.3% and amounted to $6.47 billion, said Geostat.
Georgia’s external trade turnover increased to $9.2 billion (by 0.53%) in January-September.
Geostat data showed that 4.014 new enterprises were registered in September, down by 1.4%. (Agenda/Business World Magazine)