Georgia Leads 22 European and Central Asian Countries in Economic Growth Rates

Deputy Minister of Economy Vakhtang Tsintsadze reported that Georgia has outpaced many countries in Europe and Central Asia in terms of economic development and will remain the leader in the next two years. This statement was made based on the January report of the World Bank Group. According to the World Bank, the average forecast for Georgia's GDP growth in 2025-2026 is 1.5 times higher than that of other EU candidates and five times higher than the growth rate of the Eurozone economy, Primetime.ge writes.

"Our goal is to bring the economic parameters and the economy of our country closer to the economy of developed countries, which will allow us to increase the income of the population, create new jobs, and make the country more attractive for international investment," Tsintsadze added.

World Bank experts expect that global economic growth will remain at 2.7% in 2025-2026. The global economy is likely to stabilize at a low level of growth that will be insufficient for sustainable economic development, given the possibility of further deterioration due to increased political uncertainty and adverse changes in trade policies, geopolitical tensions, persistent inflation, and climate-related natural disasters.

Against this backdrop, emerging market and developing economies will enter the second quarter of the 21st century with per capita incomes growing significantly slower than those of advanced economies. Without a course correction, most low-income countries are unlikely to graduate to middle-income status by mid-century. Policy actions at both the global and national levels are needed to create a more favorable external environment, enhance macroeconomic stability, ease structural constraints, address the impacts of climate change, and accelerate long-term growth and development.

According to World Bank forecasts, the rate of economic growth in the South Caucasus will slow to 3.9% in 2025 and to 3.5% in 2026. At the same time, for Georgia, the figures have been increased from 7.5% to 9% in 2024, and in 2025-2026, 6% and 5% are expected, respectively. Minister of Economy and Sustainable Development Vakhtang Tsintsadze noted that many of the country's state programs are aimed at small and medium-sized businesses, competitiveness, and growth. In addition, a number of large infrastructure projects are being implemented that will contribute to the growth of labor productivity and the creation of a more attractive business environment. "As a result of correct and consistent macroeconomic policies, we expect to maintain high rates of economic growth in the coming years," the official added.

Georgian Prime Minister Irakli Kobakhidze also emphasized that Georgia's economic growth indicators distinguish the country as a leader not only in the region, but also in Europe. In his opinion, it is realistic to achieve the same result in 2025. It is worth adding that Georgia has consistently exceeded international experts' forecasts in recent years. And there is reason to believe that this tradition will continue.

According to the results of January-November 2024, Georgia's real GDP growth reached 9.4%, according to the National Statistical Office. Record figures were recorded in many areas over the 12 months.

The country's foreign trade turnover increased by 8% year-on-year to $23.42 billion. Exports grew by 7.8% to $6.56 billion, while imports increased by 8.1% to $16.86 billion.

The number of international visits has been higher than in the last four years, with more than 7.3 million arrivals recorded in 2024, up 4.2% from 2023. The number of countries from which tourists come is expanding, with particularly significant increases in flows from China and Israel.

According to the Association of Georgian Airports, another passenger traffic record was set in 2024, exceeding 7.4 million, which is 24% more than in 2023. The number of flights increased by 25% to 31,937 (+25%). For comparison: in 2023, the figures were over 5.9 million and 25.6 thousand, respectively.

In 2024, agreements were signed with 10 airlines on 13 new routes. From March 2025, two British carriers, as well as a French and Swiss one, will enter the Georgian market. The schedule will be expanded with flights that will connect Georgia and London, Geneva, Milan, Paris, Zurich. And negotiations are underway with new partners.

Recall that earlier the International Monetary Fund stated that in 2024 Georgia will take sixth place in the world in terms of economic growth. In 2025, the IMF expects GDP to increase to 6%.

(c) Materials from the site https://internationalinvestment.biz/