The appreciation of the GEL's real effective exchange rate is seen as a result of not just short-term cyclical factors but also significant structural shifts in the current account, particularly since the onset of the Russia-Ukraine conflict in 2022. [...] Specific currency movements in the first quarter of 2024 included a 0.9% depreciation of the GEL against the US dollar and a 0.1% appreciation against the euro. [...] Shipping costs, which spiked due to tensions in the Red Sea region at the end of the previous year, decreased steadily until the end of April but surged again in early May. [...] In the first quarter of 2024, Georgia saw an 8.6% increase in international visitors compared to the previous year, yet this was still 13.2% below the numbers seen before the pandemic. [...] In 2023, Georgia’s trade deficit expanded due to an increase in goods imports, which outpaced the exports of goods, particularly in the latter half of the year amid weak external demand.
Authors
- Pages
- 5
- Published in
- Georgia
Table of Contents
- MACROECONOMIC REVIEW Q1 2024 1
- Authors Giorgi Nebulishvili Davit Keshelava 1
- SUMMARY 1
- -15 1
- -10 1
- Figure 1 - Real GDP Annual Growth Rate. 1
- GDP annual growth GDP annual growth forecast 1
- MACROECONOMIC REVIEW Q1 2024 2
- 1.5 5.6 2
- MACROECONOMIC REVIEW Q1 2024 3
- Deposit interest rates 0.3 percentage points 10.5 2.3 Lending rates 1.9 percentage points 11.9 3
- MACROECONOMIC REVIEW Q1 2024 4
- 8.6 13.2 1.5 USD 808 million 4
- MACROECONOMIC REVIEW Q1 2024 5
