The State Statistical Agency of Georgia reported on the growth of the country’s economy in June. According to the Georgian Statistics Agency, 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 this year amounted to 10.5%, head of the agency Gogita Todradze said on July 31 live on the Mtavari Arkhi TV channel.
But leading Georgian economists are skeptical about these figures. There is no evidence that Georgia’s economy is growing, says economist Nika Shengelia. «There is no evidence of economic growth. Many Georgians leave the country because they cannot find work. To understand [that the data on GDP growth is unfounded], one does not need to argue for a long time.
Firstly, inflation is higher than economic growth, prices have increased, re-export, all this is reflected in the calculation of GDP,» he told a correspondent. The analyst added that the statistics are affected by foreign remittances.
According to official data, Georgia receives an average of $500 million per month. Added to this are unofficial receipts of about the same amount. “That is, money comes into our economy from outside, money that was not produced here. This is the money that card e-commerce generates, and if something is sold in stores and paid for in the service, then about 40% is accounted for by this money. And these the data is included in the GDP, and the authorities tell us that the economy is growing,» the economist explained.
At the same time, it is known that there is a decline in the manufacturing industry and construction. «These are areas in which people should work and products should be created. Therefore, there is no growth in the sectors of the real economy,» Shengelia stressed.
Information that the Georgian economy is growing looks doubtful against the background of the fact that the number of unemployed is not decreasing, economist Demur Giorkhelidze noted. «How can there be economic growth and the number of employed not grow? This growth is for the government, but not for Georgia. Prices continue to rise. There may not be a jump in prices, but prices will rise, and this process cannot be stopped,» he wrote on July 31 on his Facebook page.
Georgia’s GDP growth data for June looks dubious amid a rising number of low-income residents, a professor at Georgia’s University of Business and Technology Irakli Makatsaria said. «Poverty is growing in the country. If the economy is growing, then this should be reflected in the standard of living of the population. Migration is also growing catastrophically. People leave Georgia to earn and support their families. All this really reflects the standard of living in the country. To all this, we must add high prices and high inflation in the country,» Makatsaria said on the air of the Formula TV channel on July 31.
Gotua