Economists summed up the results of last year. Georgia’s economy has shown unprecedented growth. The results were better than expected. Details are in the article | Sea Inside
According to the National Statistics Service, Georgia’s economy grew by 10.6% in 2021 compared to the previous year. This is 2.5 times more than experts predicted. The nominal GDP indicator has also grown. It amounted to about $20 billion instead of the expected $19 billion.
Sea Inside experts predict that the price of real estate will also grow. They recommend investing in it now so that the money will start generating income in the near future.
In December last year, more than 4,500 new business organizations were registered – this is 20% more than in December 2020.
In 2021, the level of GDP per capita also increased to $5,000. Most of all, GDP growth is observed in such industries as trade, real estate transactions, the hotel and restaurant sector, as well as the entertainment and recreation industry. Experts explain such successes by two decisions of the authorities: 1 – taking measures to support business and 2 – lifting restrictions on movement and opening borders in June 2021. However, against this background, an increase in inflation to 13.9% is noticeable – this is the maximum since 2012.
In 2021, Georgia improved its position in the world ranking of economic freedom of the World-2020. It rose to 8th place, leaving behind Russia (89), Turkey (99), Azerbaijan (112), Belarus (114), Estonia (14) and other countries. The World Economic Freedom rating compares countries according to five criteria. The following areas received the highest rating (10 points): financial openness, ease of opening a bank account, the activities of commercial banks, the level of interest rates on loans. Successes have also been noted in the legal system and in property issues.
What will happen to Georgia’s economy in the future
Experts give an encouraging forecast of the Georgian economy. They assume that growth will continue in 2022-2023. The Ministry of Finance writes in its report that “by the end of 2022, the volume will approach $21.5 billion, and the GDP per capita will be more than $5,600.” World Bank financiers expect the economy to grow by 5.5% in 2022 and by 5% in 2023. The international organization expects that in 2021-2022 the country will recover the fastest in the region. Next year, she will return to the usual rhythm of life and recover to the level of 2019. Analysts expect that in 2020-2025 Georgia will be on the 11th place in the world in terms of growth rates.
