Real GDP growth was 5.0% y/y in September 2017
Georgia’s economy expanded 5.0% y/y in September 2017, after growing 4.3% y/y in previous month, according to GeoStat’s rapid estimates. In September 2017, the fastest growing sectors were hotels and restaurants, construction, manufacturing and trade, while real growth was down in land transportation. Overall, in 9M17 real GDP growth was 4.7% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Tourist arrivals up 19.9% y/y in October 2017
Total international arrivals to Georgia increased 15.2% y/y to 0.61mn visitors in October 2017, according to the Ministry of Internal Affairs. A 19.9% y/y growth in tourist arrivals (0.26mn persons, 42.7% of total) drove arrival growth. Out of top countries by arrivals, in October 2017, visitors continued to increase from Armenia (+12.7% y/y), Russia (+30.3% y/y), Iran (+76.8% y/y), Azerbaijan (+9.1% y/y) and turkey (+2.4% y/y). Arrivals from EU were up 17.4% y/y to over 29,900 visitors. In 10M17 international arrivals increased 18.8% y/y to 6.4mn visitors, while tourist arrivals increased 28.0% y/y to 3.0mn.
Inflation was 6.4% y/y and 0.8% m/m in October 2017
The annual CPI inflation was 6.4% in October 2017 up from 6.2% inflation in previous month, according to GeoStat. Core inflation was 4.4% in October compared to 4.5% in previous month. Annual price changes were driven by price increases in food and non-alcoholic beverages (+7.4% y/y, +2.21ppts), transport (+14.7% y/y, +1.83ppts), and alcoholic beverages and tobacco (+17.6% y/y, +1.13ppts) categories. On a monthly basis, there was 0.8% inflation in October 2017. Price increases in food and non-alcoholic beverages (+1.6% m/m, +0.46ppts) and clothing and footwear (+6.5% m/m, +0.19ppts) categories were the major drivers of monthly Inflation dynamics.
Georgia ranks 9 out of 190 economies in 2018 Doing Business
According to the World Bank’s Doing Business 2018 report, Georgia has improved its performance by 7 positions over the past year, and has moved from 16th to 9th place out of 190 economies and ranks highest in Europe and Central Asia region. 2018 Doing Business finds that Georgia implemented substantive changes in the local regulatory framework in the following areas: Getting Electricity, Protecting Minority Investors and Resolving Insolvency.
