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GDP
2023: GDP growth of 7.5% driven by ICT industry
In 2023, real GDP Georgia growth was 7.5% compared to the previous year. The positive dynamics is due, in particular, to the development of the ICT industry. This is stated in the materials of the National Statistics Service of Georgia "Saxtat" (Gruzstat), published on March 20, 2024.
It is noted that in current prices, the country's GDP in 2023 amounted to 80.25 billion lari, or $30.54 billion. A year earlier, these values were equal to 72.86 billion lari and $24.99 billion, respectively. Thus, growth was recorded at 10.1%. GDP per capita increased on an annualized basis from $6,731 to $8,210.
The largest growth in 2023 in Georgia was demonstrated by the field of information and communications: the increase in annual terms was at around 27.4%. Next comes the activities of administrative and support services with an increase of 26.4%. In the field of professional scientific and technical activity, positive dynamics amounted to 19.1%. In the field of education, the growth compared to 2022 is 18.9%. Public administration and defense, as well as compulsory social security, added 13.7%.
At the same time, a decline was registered in a number of industries. Negative dynamics was demonstrated by the spheres of health and social services (minus 15.4% compared to 2022), water supply, sewerage, waste management and pollution control (minus 11.3%), mining (minus 4%), supply of electricity, gas, steam and air-conditioned air (minus 3.2%), as well as real estate activities (minus 2.5%).
According to the results of 2023, the largest share in the GDP structure of Georgia is in the trade (15.6%), real estate (10.2%), manufacturing (9.5%), construction (7.9%), as well as agriculture, forestry and fisheries (6.9%).[1]
2022: The rise of GDP in the 1st half of the year by 10.5% due to the inflow of capital from Russia amid the conflict in Ukraine
The growth of the Georgian economy in June amounted to 7.2%, and in the first half of 2022 - 10.5% on average. The main reason for the growth was the inflow of Russian capital.
Since the beginning of Russia's special operation in Ukraine in February 2022, many Russians have left for Georgia as a neutral country, without language problems, with a mild climate and cheap life. And they took their money there.
Since February 24, about 35,000 Russians have settled in Georgia, the WSJ writes, citing local government data. Basically, these are young people in their 20s and 30s.
By and large, Georgia has become a financial backbone between Russia and the other world.
According to the American NGO Transparency International, in January-June 2022, Georgia received about $1.2 billion in revenues from Russia through remittances, tourism and commodity exports. This is 2.5 times higher than the same indicator last year.
In March, April, May and June 2022, 6,400 Russian companies registered in Georgia. This is seven times the annual figure for 2021.
Since February, imports of petroleum products from Russia have grown by 280%, the turnover amounted to $118 million. Electricity imports increased 4 times by $ 9 million. Coal and coke imports increased 3-fold to $ 23 million.
In the second quarter of 2022, remittances from Russia to Georgia increased 6.5 times and amounted to $678 million.
Russian citizens posted more than $670 million on the accounts of Banks of Georgia. As of August 31, 2022, the number of accounts opened by Russians approached 60 thousand.
National debt
2023: State debt - 42% of GDP
Currency: Lari
2022: Strengthening lari to 2.71 per dollar amid inflow of transfers from Russia during Ukraine conflict
In August 2011, the National Bank of Georgia is trying to contain the strengthening of the lari. On Wednesday, the regulator - not for the fourth time since May - acquired $40 million at a foreign exchange auction, writes Novosti - Georgia. Now the lari against the dollar is trading at 2.71, and on March 10, the rate was 3.4 lari for $1. This strengthening is partly due to a sharp increase in remittances to Georgia, including from Russia, against the background of the migration of some workers during the conflict in Ukraine.
Cryptocurrencies in Georgia
Main article: Cryptocurrencies in Georgia
Remittances
Main article: Remittances (Georgian market)
Inflation
2022: Inflation in November - 10.6%
Transport infrastructure
Foreign trade
2024: Rising imports from China, Germany and the EU
Total exports China to, and Armenia Azerbaijan Georgia reached $1.1 billion in the first quarter of 2024 compared to $0.4 billion in the first quarter of 2019. This 150% growth is clearly not to meet any boom in domestic demand in the Caucasus. All these goods are sent to, Russia said chief economist IMF Robin Brooks in May 2024.
2023
Reduction of trade with Russia to $2.5 billion
The trade turnover of Georgia and Russia in 2023 decreased by 3% compared to the previous year and amounted to $2.5 billion. This is evidenced by the data of the National Statistics Service of Georgia, released in January 2024.
According to the TASS news agency, citing materials from the department, Russia in 2023 took second place among the countries with the largest trade with Georgia. In the first position is Turkey.
In 2023, exports of goods from Georgia to Russia increased by 2.2% (to $657 million), and the volume of imports, on the contrary, decreased by 5% (to $1.8 billion).
The trade turnover of Georgia and Turkey in 2023 reached $3 billion, an increase of 6% compared to the previous year. Trade turnover between Georgia and the United States in 2023 increased by 60% compared to 2022 - to more than $2 billion.
After the United States, China (trade in 2023 - more than $1.6 billion), Azerbaijan (more than $1.5 billion) and Armenia (more than $1.1 billion) are on the list of Georgia's largest trading partners.
The total foreign trade turnover of Georgia at the end of 2023 exceeded $21.5 billion, an increase of 12.5% on an annualized basis. Exports amounted to more than $6 billion (an increase of 9.1%), and imports - more than $15 billion (an increase of 14%). The negative balance of the foreign trade balance for 12 months of 2023 exceeded $9.3 billion.
According to Doctor of Economics, Professor and former Deputy Minister of Agriculture Leonid Kholod, Russia exports to Georgia mainly coal, gas, oil, wheat, flour, glass containers, and Georgia sells to Russia mainly wines, wine materials, alcohol materials, mineral water, lemonades and other soft drinks. In addition, Georgia has become a major supplier of parallel imports, the expert noted.[2]
54% of Georgian exports of mineral and spring waters for the year fell on Russia
In 2023, 112 tons of mineral and spring waters worth $62 million were delivered to Russia from Georgia, which corresponds to more than half (54%) of the export of such products from Georgia. This is evidenced by data from the National Statistics Service (Geostat).
The three countries in terms of the volume of Georgian mineral and spring waters imported in 2023 included Kazakhstan (33 tons for $25 million) and Ukraine (18 tons for $14 million). Next are Lithuania and Uzbekistan with indicators of 11 tons/$ 8 million and 8 tons/$ 7 million, respectively.
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Thus, despite the sanctions, Russia remains a key importer of Georgian mineral water. According to RBC, Russia traditionally increases imports of drinking and mineral water on the eve of the New Year. According to the Honest Sign labeling system, Georgia was a key exporter to Russia of these products in 2022, then it accounted for more than 70% of imports.
As Geostat noted on February 18, 2024, over the past two years, due to changes in market conditions, the export of Georgian mineral water has decreased by 21%. In 2021, it reached a peak of 260 tons for $142 million. In 2022, it amounted to 205 tons for $113 million, and in 2023 - a little more than 185 tons.
The basis of export is the popular Georgian brands "Borjomi" and "Nabeglavi." As for the import of mineral and spring waters to Georgia, in 2023 it decreased by 715% - to 280 tons by $145 thousand from 2284 tons by $1.1 million. The reasons for such a sharp drop in imports are not called.
The main importing countries of "mineral matter" to Georgia in 2023 were, Italy,, and Turkey. France Germany At the same time in 2022 were in the lead and, Ukraine but in Israel the 2023rd these countries sharply reduced supply of mineral and spring waters to Georgia because of military operations in both countries, explained in Geostat.[3]
Growth of wine exports to Russia by 50% in the first quarter
From January to March 2023, Georgia exported more than 13 thousand tons of wine to Russia, which is 1.5 times more than the same indicator in 2022.
Rising imports from China
2022
Russia came in second place among the largest trading partners of Georgia with a turnover of $2.4 billion with an increase of 52%
In 2022, Russia's share in Georgia's foreign trade amounted to 13.1%. The trade turnover of Georgia and Russia in 2022 exceeded $2.4 billion, which is 52% more than 2021, - Gruzstat.
In 2022, Georgia exported to the Russian Federation more than 73 thousand tons of natural wines (over $160 million), more than 57 thousand tons of ferroalloys worth over $108 million, more than 5.3 thousand cars (more than $75 million), more than 12 thousand tons of alcoholic beverages (more than $56 million), more than 92 thousand tons of mineral and fresh water (more than $50 million).
Trade turnover with Russia for 9 months increased by 50% to $1.7 billion
The trade turnover of Georgia and Russia for 9 months of 2022 amounted to more than $1.7 billion, which is 50% more than the same period in 2021. Russia is in second place among Georgia's largest trading partners after Turkey. China is in third place. In January-September, Russia's share in Georgia's foreign trade amounted to 12.6%.
In January - September, Georgia exported to the Russian Federation more than 44 thousand tons of natural wines (over $109 million), more than 54 thousand tons of ferroalloys worth over $105 million, more than 3.2 thousand cars (more than $45.7 million), more than 7.6 thousand tons of alcoholic beverages (more than $40 million), over 63 thousand tons of mineral and fresh water (about $35 million).
Contrary to Western sanctions, Georgian exports grew by 11%, and imports into the country from Russia increased by 160%. Georgia actively purchases Russian gas and oil products, coal coke, flour and grain.
Growth in trade with the United States and the EU due to circumvention of sanctions against the Russian Federation
The rapid growth of trade flows USA EU with neighbors Russia may be a sign that sanctions can be avoided, the European Bank for Reconstruction and Development believes.
German exports to Russia from May to July 2022 fell 38% compared to the average for the same period in 2017-2019. However, it almost doubled to Armenia and more than tripled to Kyrgyzstan - a trend also seen in trade flows to the Caucasus and Central Asia from the US, Britain and EU countries.
Georgia's share in the supply of silicomanganese to the United States - 28%
As of 2023, Georgian enterprises supply 28% of silicomanganese to the United States. This is a brittle alloy of iron, silicon and manganese used in metallurgy to give iron-based alloys strength, wear resistance and impact resistance.
2020:57% of citrus exports go to Russia
The results of 2020 show that in one of its most famous foreign markets, in the supply of tangerines, Georgia remains directly dependent on Russia. This season, more than 57% of citrus fruits exported by Georgia fell into the Russian Federation. Georgian tangerines are still not allowed into Europe, despite the free trade agreement.
Energy carriers
2023: 16.5% increase in natural gas imports from the Russian Federation to 486 thousand tons
In 2023, 2.3 million tons of natural gas were supplied to Georgia from abroad, which is 0.2% less than a year earlier. At the same time, imports from Russia increased by 16.5%, to 486 thousand tons. This was announced at the end of January 2024 by the Georgian Statistics Service.
According to Interfax, in monetary terms, imports of Russian gas to Georgia in 2023 increased by 18% compared to 2022 - to $131 million. The Ministry of Economy and Sustainable Development of Georgia explained a significant increase in gas purchases in the Russian Federation by mastering the maximum technical limit for supplies from Azerbaijan during the winter peak of the load. The growing demand and the system as a whole were balanced due to the supply of Russian gas. In addition, imports were carried out with commercial expediency and served to ensure stable and continuous supplies to the system, the department added.
 | As for gas imports from Russia, you know that Azerbaijan cannot fully meet our needs, and therefore we have to supply gas to Georgia from alternative sources in order to freely supply the country with energy, we are talking about both the household sector and the economy, - said the Minister of Economy and Sustainable Development of Georgia Levan Davitashvili. |  |
According to him, Georgia receives energy resources from Azerbaijan and Russia at the lowest price compared to other countries in the region. In 2023, there was a decrease in gas imports from Azerbaijan - by 4% in physical terms, to 1.84 million tons, and by 9.2% in monetary terms, to $314 million. In addition, a quadruple increase in gas imports from Iran was recorded - up to $142 thousand. The share of Azerbaijan in the volume of natural gas imports in 2023 decreased to 78.5% from 81.6% in 2022, and the share of the Russian Federation increased to 21.5% from 18.5%. Iran accounted for 0.003% of supplies in 2023.
2022: Russia is the largest fuel supplier to Georgia
As of September 2022, Georgia has purchased goods worth $1.06 billion from Russia since the beginning of the year. This is 68% more than a year earlier. According to Saxtat, the first place in imports from Russia is occupied by oil, the volume of which this year increased by 300% to $337 million. As a result, Russia has become the main fuel supplier country for Georgia.
The share of oil from Russia from 16% of total imports in 2021 turned into 63% in September 2022.
Power
2022: Black Sea Energy - agreement to export electricity to the EU under the Black Sea
- Black Sea Energy - a project of an underwater cable along the bottom of the Black Sea for the transmission of electricity from Azerbaijan.
2020: Energy consumption per capita
and
Real estate
2023: Real estate sales in Georgia decreased after the departure of Russians by 5.9% to 74.2 thousand
At the end of 2023, the number of real estate purchase and sale transactions in Georgia amounted to about 74.2 thousand. This is 5.9% less than in the previous year, when the figure was 78.8 thousand. The negative dynamics is partly due to the departure of the Russians. Market data is provided in the BusinesStat review published in mid-September 2024.
The study looks at villas and townhouses, land plots and apartments. According to estimates, in 2019, 58.9 thousand real estate purchase and sale transactions were made in Georgia, which is 2.7% higher than in 2018. But in 2020, a 19.9% decline followed with a final result of 47.2 thousand. Restrictions during the COVID-19 pandemic led to a decrease in tourist flow: 1.7 million foreign citizens visited Georgia over the year, which is 81% less than in 2019. In addition, work on construction sites was stopped, and transport was interrupted, which negatively affected the pace of construction.
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In 2021, the industry began to recover: the number of real estate transactions in Georgia rose by 34.4%, amounting to 63.5 thousand. In 2022, the number of transactions reached a record value of 78.8 thousand, exceeding the 2021 figure by 24.2%. In 2022, about 1.5 million Russian citizens entered Georgia and about 40% of apartments bought by foreigners were purchased by Russians. In 2023, there was a fall: experts associate this situation with market adjustment after rush demand.
The review says that real estate in Georgia is an attractive way to invest funds for investors from all over the world due to high rental profitability, a growing but acceptable price per square meter, flexible tax system when buying real estate from $100 thousand. In addition, further GDP growth, a decrease in the unemployment rate, the development of large infrastructure projects are expected in the country, the tourist flow is growing, and in 2023 Georgia became a candidate country for joining the EU.[4]
2022: Russians buy 15,164 properties in Georgia
Against the background of the conflict in Ukraine, Russians in 2022 bought 15,164 real estate in Georgia.
Tourism
2023
Russian tourist flow to Georgia increased by 31.1% to 1.18 people
In 2023, the Russian tourist flow to Georgia reached 1.18 million people, which is 31.1% more than a year earlier. This is evidenced by data from the National Statistics Service of Georgia, published at the end of January 2024.
Russians in 2023 accounted for 23.2% of foreign tourists who visited Georgia. In second place in this indicator is Turkey (21.4%), in third - (Armenia 13.5%). The total number of foreign visitors in 2023 reached 5.1 million. This is 27.8% more than in the previous year.
A visitor means a traveler - not a resident of Georgia, at least 15 years old, who paid a visit to Georgia for a period of less than one year. This category does not take into account citizens who have come for employment, diplomats accredited in Georgia, employees of the Armed Forces, as well as persons who often cross the border due to a kind of activity or other circumstances. As for tourist visits, about 4.7 million of them were made in 2023 (an increase of 27.8%).
Basically, Georgia was visited in 2023 for the purpose of recreation and entertainment, this is 52.3% of the total number of visits. People also came to visit friends and relatives (20.4%), performing transit to another country (12.8%), in connection with professional activities (6.8%), shopping (5.4%) and for the purpose of treatment (0.5%).
According to the National Statistics Service of Georgia, the situation with the flow of tourists to the country could have been radically different if it had not been for the decision of the Azerbaijani leadership to completely close the land borders with all neighboring states (including Georgia) for an indefinite period due to the unresolved Armenian-Azerbaijani conflict. Georgia's total tourism income in 2023 amounted to 12.9 billion lari ($4.98 billion). This is 20.5% more than in 2022.[5]
Opening of direct flights with Russia, despite pressure from the United States and the EU
Georgian Airways has received permission to fly with Russia and will fly to Moscow 7 times a week from May 20, the Georgian aviation regulator said.
Georgia in May 2023 also issued permission to the Russian airline Azimut to operate flights to the republic from May 17.
Georgia expects additional tourism profits of $300-400 million, thanks to direct flights with Russia, said the head of the country's Ministry of Economy Davitashvili.
Agriculture
2019: Average use of pesticides in agriculture
Consumption
2023: Poultry meat is the most consumed type of meat
Notes
- ↑ Gross domestic product of Georgia in 2023
- ↑ Trade turnover of Georgia and Russia in 2023 decreased by 3%
- ↑ ევროპის ქვეყნები, სადაც სახელმწიფო გადასახადები ყველაზე მაღალია
- ↑ In 2019-2023, the number of real estate purchase and sale transactions in Georgia increased by 26%: from 59 thousand to 74 thousand.
- ↑ In 2023, most tourists to Georgia came from the Russian Federation
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