6.5% Economic Growth Recorded in April

6.5% Economic Growth Recorded in April

6.5% Economic Growth Recorded in April

The FINANCIAl -- In April 2018, according to the preliminary evaluation and compared to the same period of the previous year, economic growth of 6.5% was recorded.

First Vice Prime Minister of Georgia, the Minister of Economy and Sustainable Development Dimitry Kumsishvili discussed the data published by the GEOSTAT and the economic growth at the briefing held on May 30.

“This is the highest indicator in the recent years. Such a high rate of economic rate in terms of monthly as well as quarterly evaluation has not been recorded since 2014,” – Dimitry Kumsishvili stated.

First Vice Prime Minister also highlighted the dynamics of the GDP growth in the first four months of 2018. Namely, the GDP growth reached following figures:

January - 4.4%;

February - 5.5%;

March - 5.6%;

April - 6.5%.

As for the quarterly indicators, the mean growth in the first quarter was 5.2%, while the mean growth in January-April equals to 5.5%.

As Dimitry Kumsishvili said at the briefing, it is very important that in April 2018 the turnover of the enterprises registered in Georgia was increased by 15.0% compared to the same period of the last year, according to Ministry of Economy and Sustainable Development of Georgia.

“Only in April, 4 037 new enterprises were registered in Georgia, which is by 9.3% higher than in April of 2017. This fact clearly indicates that the private sector is a driving force, which is a positive fact,” – the Minister of Economy and Sustainable Development noted.

Dimitry Kumsishvili named several sectors that influenced the recorded economic growth. These sectors include the export of the services and the incomes from the international travel – in April, annual income growth from the tourism reached 27.5% (increase by 51.6 million USD) and equaled to 238.9 million USD. The income from the tourism resulted in about 3.8% share in total economic growth. At the same time, net money transfers was increased by 16.7% and amounted to 105.4 million USD, which will have a positive impact on further economic growth.

“Georgian Government continues to implement reforms targeted at increasing the economic growth. We have announced launching of new reforms recently, which include credit-grant foundation that would promote SMEs to create new jobs. I am more than sure that in close cooperation with our partners, we will succeed in this process,” – the First Vice Prime Minister commented.