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Economic growth of Georgia in 2016 was 2.7 percent, in which the main contributor (3.5%) was investment. Growth
was positively affected by the consumption, but its contribution was 1.1%. Real consumption was increased by only 1.2 percent compared to the last year, due to increased costs of debt service given high dollarization level in the country. Net export influenced to the economic growth negatively (-0.9%), that can be explained by external demand shock.
Economy has started recovery from 2017. Shocks are offed in the trade partners, as a result, export and money transfers has increased, nominal effective and GEL/USD exchange rate has stabilized, which lead to improve expectations and was positively affected to export, consumption and economic growth overall. In total, economic growth was 5.1 percent in the first quarter, and 4.7 in second quarter. In 2017, growth is mainly driven by external demand.
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The article is based on the data of Ministry of Finance of Georgia.
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