Georgia's economy is on the rise: Unusual factors that shape growth in October

The latest report of the National Statistics Service "Sakstat" notes the extraordinary dynamics of Georgia's economic growth in October 2023, with an emphasis on low sectors that make a weak contribution to the rapid recovery.

Real economic growth in Georgia in October 2023 amounted to 6.2%, which is an impressive result compared to the same period of the year. However, what makes this growth really successful is the variety of areas that have a decisive impact.

Areas that make the main contribution:

Financial and insurance activities: these industries have become the driving force of growth, increased interest and non-interest income of commercial banks.

Trade and the automotive sector: The growth in car trade, including the re-export of passenger cars, contributed to the upturn.

Construction and Engineering facilities: The construction sector has prospered due to activity in civil engineering, including roads, tunnels, bridges and autobahns.

Transportation and warehousing: The growth of freight and ground transportation services, including air transport, contributes to the positive dynamics.

Specific sectors:

Trade with neighboring countries: The rate of re-export of passenger cars increased 2.8 times, especially in the direction of Kazakhstan, Kyrgyzstan and Azerbaijan.

Gas trade has grown: Wholesale gas trade has grown and an increase in imports in September 2023 occurred worldwide.

Retail products: There has been an increase in attention in the retail trade of food, beverages and tobacco.

Additional factors:

Exports and imports: In the ten months of 2023, exports increased by 12.5%, imports by 17.8% compared to the same period in 2022.

New businesses: Despite a decrease of 11.8%, approximately 6.4 thousand new enterprises were registered in the country last month.

These initial reasons cause not only resistance to Georgia's economic growth, but also its non-standard reasons, which make the current economic growth even more outstanding.