Economic growth rate will stay relatively high until the elections, then it will projected to hold stable at a low rate, Davit Keshelava, lead economist of the ISET research institute, told Commersant.
According to Keshelava, the 9% economic growth recorded in 6 months of this year is a high rate and it was driven by several factors.
"There were many causes of relatively high economic growth. For example, the sectors with high activity in the recent period which share in the economy has significantly increased, such as the information and technology sector, as well as the transport sector that contributed the most in the gross domestic product.
Tourism has again been identified as a key driver of economic recovery even though the country doesn’t see a recovery in the number of incoming tourists, the income exceeds the pre-pandemic levels.
As for the foreign sector, I’d like to single out trade here, although we have a decrease in goods production, but this is balanced by an increase in the export of services.
The factors are likely to continue at least until the election. In the pre-election period, an increase in state expenditures is expected that will also boost high economic growth. Before the elections, the relatively high economic growth rate will stay, after the elections, it will probably stabilize at a low rate," says the economist.
Note: in June 2024, Georgia’s economy grew by 7.5%, the average rate of real growth for 6 months stood at 9%.
