Growth of the Georgian economy and interest from investors
18 September 2023 In the first half of 2023, foreign investments worth $1,1 billion arrived in Georgia.
Economic expert Soso Archvadze noted that the growth rate of foreign direct investment exceeds GDP growth by 1,5 times. This indicates the attractiveness of the country for foreign investors. In 2020, amid the pandemic, the volume of foreign direct investment decreased by 57,2% compared to 2019, to $572 million. However, already in 2021, investments doubled, reaching $1,2 billion.
Spain, the UK, Turkey, China, the Netherlands and the US stand out as the main investors in Georgia during the reporting period. In 2022, according to updated data, the volume of investments increased by 67,5% and amounted to $2,1 billion.
The Georgian government has raised its economic growth forecast from 5% to 6,5%, according to Finance Minister Lasha Khutsishvili. In July 2023, GDP increased by 5,5% compared to the same period in 2022, and on average over the seven months of this year, the country's economy grew by 7,2%.
In August, the National Bank of Georgia revised upward its forecast for annual economic growth for 2023, increasing it from 5 to 6%. This is the second adjustment to the GDP forecast. On May 11, the National Bank increased the expected economic growth in 2023 to 5% compared to 2022. Initially, the country's main financial institution predicted GDP growth in Georgia at 4%.
The International Monetary Fund forecasts Georgian economic growth at 2023% in 4. The World Bank in April raised its GDP growth forecast for Georgia for 2023 from 4 to 4,4%, while the Asian Development Bank expects Georgia's economy to grow to 4,5% in 2023.