The Asian Development Bank released the latest data about the Georgian economy as per which the (GDP) will witness a growth in GDP from 5% in 2024 to 5.5 % in 2025.
The annual economic publication was published on Thursday. The report said growth in the next two years, 2024 and 2025 would be boosted by “continued gains” in tourism sector and investment.
ADB Country Director for Georgia Lesley Bearman Lahm said the country had been “growing steadily” recently. According to her “Strong focus on regional cooperation, private sector-led growth, developing the country’s human capital, and adopting policies and actions for a fast transition to a greener and more climate resilient economy will help to accelerate prosperity and strengthen social security”.
The report further stated that the fiscal deficit was projected to satisfy the Government’s fiscal rule by remaining below three per cent of GDP in 2024 and 2025, which has been reflecting further improvements in revenue administration, rationalisation of tax expenditures, and management of public debt.
On the revenue front it was projected to rise to 28 per cent of the GDP in 2024 and 28.5 per cent in 2025 with the higher collection of the tax amount.
Other statistics of the report also include:
Growth in services sector go from 5.5% in 2024 to 6.3% in 2025
Growth in industry sector will also see a increment from 4.2% in 2024, to 4.9% in 2025
Agriculture sector groeth will be 0.5% in 2024 and then 1.1% in 2025
Imports sector will also grwo by 6.1% in 2024 and by 11.1% in 2025
The ADB representative also said that Georgia’s population was ageing because of below-replacement fertility, increasing life expectancy, and outmigration of working-age people to the other coutries .
While suggesting a solution to this problem he suggested that the Government needed to strengthen social protection programmes and create new jobs for the elderly to promote social inclusion.
The job creation will also play vital role to mitigate the outmigration.i
