The Georgian economy is expected to grow moderately in 2024 due to slowing external demand and decreased expansion of services before recovering slightly in 2025, according to a new Asian Development Bank (ADB) report.
The Asian Development Outlook (ADO) April 2024, ADB’s flagship annual economic publication, forecasts Georgia's gross domestic product (GDP) to grow by 5% in 2024. Growth is expected to accelerate to 5.5% in 2025, boosted by continued gains in tourism and investment.
“Georgia has been growing steadily in recent years,” said ADB Country Director for Georgia Lesley Bearman Lahm. “A strong focus on regional cooperation, private sector-led growth, developing the country’s undoubted human capital, and adopting policies and actions that fast-track the transition to a greener and more climate resilient economy will help to accelerate prosperity and strengthen social security.”
Inflation is projected to accelerate slightly to 3.5% in 2024 and further to 4% in 2025 as commodity prices rise moderately. The fiscal deficit is projected to satisfy the government’s fiscal rule by remaining below 3% of GDP in 2024 and 2025, this year and next, reflecting further improvements in revenue administration, rationalization of tax expenditures, and sound management of public debt. Revenue is projected to rise to 28% of GDP in 2024 and 28.5% in 2025 due to higher tax collections.
