Georgia: experts criticize authorities' report on economic growth

The Georgian Statistical Agency (GSA) has reported the growth of country's economy in June. However, Georgian economists assert that statistics are influenced by money transfers from abroad, while in Georgia, a number of industries are declining, and the number of unemployed is growing.

According to the GSA, in June 2022, compared to June 2021, the country's real gross domestic product (GDP) grew by 7.2%. The growth of the country's GDP for the first half of 2022 amounted to 10.5%, Gogita Todradze, the head of the GSA, stated on July 31 live on the "Mtavari Arkhi" TV Channel.

There are no proofs that Georgia's economy is growing, Nika Shengeliya, an economist, asserts. "Many Georgians leave the country because they cannot find work. To understand [that the data on the GDP growth is unjustified], one has no need to contemplate for long. Firstly, inflation is higher than the economic growth; prices have gone up; re-exports have increased; and all this is reflected in terms of GDP," he told the "Caucasian Knot" correspondent.

Mr Shengeliya has added that the statistics are affected by money transfers from abroad. According to official data, Georgia receives an average of USD 500 million per month. "And these data are included into the GDP; and the authorities tell us that the economy is growing," the economist has concluded.

The Georgia's GDP growth for June looks dubious amid a rising number of low-income residents, Irakli Makatsariya, a professor at the Georgia's University of Business and Technology, has noted. "Poverty is growing in the country. If the economy is growing, then this should tell on the population's living standards," the professor has stated on air of the "Formula" TV Channel.

This article was originally published on the Russian page of 24/7 Internet agency ‘Caucasian Knot’ on August 1, 2022 at 09:27 am MSK. To access the full text of the article, click here.