IMF updates world economic outlook
On 10 October 2023, the IMF released updated global economic outlook. The IMF expects global economic growth to slow from 3.5% in 2022 to 3.0% in 2023 and 2.9% in 2024, partially result of the tighter monetary policy necessary to bring inflation down. The IMF also forecasts that global inflation will decline from 8.7% in 2022 to 6.9% in 2023 and 5.8% in 2024, noting that a return to target inflation levels are not expected until 2025 in most cases. For Georgia, IMF forecasts 6.2% growth for 2023 and 4.8% for 2024.
Wages increased by 18.3% y/y in 2022
In 2022, average monthly nominal wages in Georgia increased by 18.3% y/y to GEL 1,543 according to Geostat. Meanwhile, median monthly nominal wages were up 15.6% y/y (+3.3% y/y in real terms) to GEL 1,040 in 2022, 32.6% below the average monthly wage. By economic activity, the highest monthly median wages were observed in the following sectors: mining (GEL 1,703), information and communication (GEL 1,637), public administration (GEL 1,547), construction (GEL 1,500), electricity and gas supply (GEL 1,425), and financial and insurance (GEL 1,413). The lowest monthly median wages were posted in education (GEL 747), administrative activity (GEL 750) and water supply (GEL 770) in 2022.
Goods trade deficit increased by 17.9% y/y in Sep-23
In Sep-23, goods exports increased by 0.8% y/y to US$ 527.8mn, after a 4.8% y/y growth in previous month. Goods imports were up by 10.0% y/y to US$ 1.25bn in September, after growing by 2.3% y/y in August. Consequently, the trade deficit increased by 17.8% y/y to US$ 722.4mn, after a 0.9% y/y growth in previous month.
Overall, in 9M23, trade deficit increased by 22.5% y/y to US$ 6.7bn, as exports increased by 12.7% y/y to US$ 4.6bn, while imports were up by 18.3% y/y to US$ 11.3bn.
