Preliminary data shows that Georgia’s economy grew by 6.3% in June, a slight slowdown from the stable 7.5% growth seen in April and May. Despite the deceleration, analysts say the economy remains on track to meet annual forecasts.
Lasha Kavtaradze, an economist at Galt & Taggart, noted that the slowdown was anticipated following high growth in the first half of the year. “The economy expanded by 9.8% in Q1 and 7.1% in Q2. To meet our full-year forecast of 7.5%, growth of around 6.8% is needed in the second half, this is a natural moderation,” he explained.
The growth is still primarily driven by strong domestic consumption and increased investment. Business lending and large-scale government infrastructure projects, planned at 8% of GDP, are also supporting the economy.
Meanwhile, turnover among VAT-paying businesses rose 8.7% year-on-year in June, reaching 14.8 billion GEL. However, this figure also reflects a small decrease compared to previous months.
Kavtaradze said that the current trajectory remains in line with projections from the IMF (7.2%) and the National Bank of Georgia (7.4%).
