Macro Analysis /

Georgian Economy - Generating Savings

    Lasha Kavtaradze
    Lasha Kavtaradze

    Head of Macroeconomic Analysis and Forecasting

    Giorgi Iremashvili
    Eva Bochorishvili
    Galt & Taggart
    26 March 2020
    Published byGalt & Taggart
    Georgia�s economy delivered solid 4.7% growth in 2018, remaining resilient to negative developments in its largest trading partner, Turkey. This growth was supported by booming tourism and a significant increase in exports and remittances. These flows provided positive spillovers to the major sectors of the economy, along with solid growth in the banking sector�s credit portfolio. Meanwhile, the fiscal deficit reduced to 2.5% of GDP and the CA deficit narrowed to 8.0% of GDP in 2018. Importantly, Georgia recorded its first ever current account surplus of 0.3% of GDP in 3Q18 with the CA balance expected to improve further in 2019.