According to the National Bank of Georgia, tourism and increased local demand are the main drivers of Georgia's economic growth this year. In total, the economic growth rate in January-July amounted to 10.3%, and the Georgian government predicts an economic growth of 8.5% during the year.
In January-August 2022, 2.77 million foreign visitors arrived in Georgia, which is 189% more than the figure of the previous year.
The National Bank spoke about the increased economic importance of tourism in the decision on the refinancing rate. According to the NBG, the good pace of the bank lending also has a positive effect on the economic growth.
"According to preliminary data, the average annual economic growth in the first seven months of this year amounted to 10.3%. The driver of the economic growth is a significant increase in tourism revenues. However, the domestic demand is also strong, which prevents a faster decrease in inflation. The strength of the domestic demand is facilitated by the relatively high growth rate of lending. Therefore, in the recent period, the National Bank, along with the tightened monetary policy, also launched macroprudential instruments, which have already affected the growth rate of loans, and this effect will be further strengthened. At the same time, like the US dollar, the Monetary Policy Committee will determine the charge on the reserve requirements of the funds raised in the euro at a 0%-fixed rate," - the National Bank of Georgia reported.
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One US dollar trades at GEL 2.7174
10/07/2025
