Real GDP growth was 8.4% in 1Q24
Georgia’s real GDP increased by 8.4% y/y in 1Q24 according to Geostat, revised upwards from the preliminary estimate of 7.8%. Considering this upgrade, Georgia’s economy grew by 9.4% y/y in 4M24.
By economic sectors, high contributions to the 1Q24 growth came from real estate (+18.8% y/y), education (+29.1% y/y), public administration (+13.0% y/y), ICT (+12.2% y/), construction (+10.3% y/y) and transportation & storage (+9.7% y/y). Meanwhile, electricity supply (-11.6% y/y) and mining (-1.8% y/y) sectors contracted in 1Q24.
Due to stronger-than-expected growth in 4M24 and continued robust economic activity, we are raising our real GDP growth forecast to 7.0% from 6.0% for the full-2024 year.
Nominal wages up 13.2% y/y in 1Q24
In 1Q24, average monthly nominal wages in Georgia increased by 13.2% y/y (+12.9% in real terms) to GEL 1,943, after growing by 15.3% y/y in 4Q23, according to Geostat. By economic activity, the highest monthly average wages were recorded in the following sectors: financial and insurance (GEL 4,519, +20.2% y/y), information and communication (GEL 3,957, +9.0% y/y), professional and scientific activities (GEL 2,673, +12.0% y/y) and construction (GEL 2,625, +22.3% y/y). The lowest average monthly wages were in education (GEL 1,126, +11.6% y/y), water supply (GEL 1,236, +13.5% y/y) and agriculture (GEL 1,319, +4.7% y/y) in 1Q24.
NBG kept its key rate unchanged at 8.0%
On June 19, 2024, the NBG’s Monetary Policy Committee decided to keep its key rate unchanged at 8.0% due to heightened uncertainty from domestic and external factors, which have increased inflationary risks. In this context, the regulator noted that exchange rate volatility led to inflationary pressures from imported goods, compounded by the rise in global food prices over the past two months. The next committee meeting is scheduled for 31 July 2024.
Money transfers stood at US$ 284.3mn in May-24
Money transfers were down by 27.1% y/y to US$ 284.3mn in May-24, after falling by 25.2% y/y in previous month. Meanwhile, on a monthly basis, money transfers were up by 2.1% in May. Notably, Italy was the top remitting country in May. Overall, in 5M24 remittances decreased by 31.9% y/y to US$ 1.4bn.
Producer price index increased by 6.7% y/y in May-24
Annual PPI for industrial goods increased by 6.7% in May-24, after increasing by 5.9% y/y in previous month. The annual growth was primarily driven by a rise in prices in the manufacturing sector (+5.3% y/y), followed by mining (23.6% y/y), electricity supply (+9.0% y/y) and water supply (+10.2% y/y).
