Georgia's GDP to grow at least 9.5% in 2024, lari exchange rate to stabilize soon - PM

TBILISI. Dec 4 (Interfax) - Georgia's economy will grow at least 9.5% this year, and the lari's exchange rate will stabilize before long, Georgian Prime Minister Irakli Kobakhidze said.

"A few days like these can of course cause minor fluctuations, but this is absolutely temporary. The lari will stabilize, as was the case in previous fluctuations: the rate varied for a few days, but then returned to its original level. The same will happen now - the lari's exchange rate will stabilize, the economy will also stabilize. I think we'll have at least 9.5% economic growth by the end of the year," he said at a briefing on Wednesday.

The economy is still growing rapidly, he said. "October ended with 11% economic growth [compared to October last year]. Average growth for the 10 months was 10%, and economic growth is in double figures this year. This is a higher figure than last year. This process will, of course, continue," Kobakhidze said.

Galt & Taggart, Georgia's biggest investment bank, has raised its forecast for Georgia's economic growth in 2024 for the fourth time in six months and now expects GDP to grow 9.7% for the year. The National Bank of Georgia estimates that GDP will grow 8.5% this year, and the government expects growth of 8%-9%. The International Monetary Fund forecasts 7.6%, the World Bank 7.5%, the European Bank for Reconstruction and Development 6.5% and the Asian Development Bank 7%. National and international institutions have repeatedly raised their estimates for Georgia's GDP growth this year.

The political crisis in Georgia continued after parliamentary elections on October 26, won by the ruling Georgian Dream party, as the opposition, Georgian President Salome Zourabichvili, the European Union and the United States refused to recognize the election results. On November 28, Kobakhidze said the government was suspending EU accession talks until 2028. This sparked off more protests and kept demand for foreign currencies elevated: the lari's exchange rate remained unstable at the start of December after falling 4% in November.