The economic growth in Georgia remains strong, while it softened to 7.2% y/y in June, after growing by 11.6% y/y in previous month, reads the recent report of Galt & Taggart.
Pursuant to the report, cumulatively, in 1H22, Georgia's real growth was 10.5% y/y.
Considering strong 1H growth of Georgia and ongoing data, the researchers of Galt & Taggart revise the 2022 baseline growth forecast up to 9.2% from 7.6%.
"In this forecast, we assume growth to moderate in 4Q22 reflecting global slowdown," report states.
However, if external inflows remain strong despite global slowdown in 2H, in optimistic scenario the authors of the study expect 2022 growth at 10.6%. "Growth in June was recorded in hospitality sector, mining, transport and communications, while it reduced in manufacturing, construction and real estate. On expenditure side, strong remittances and tourism receipts continued to support consumption," the report concludes.
