On February 2, 2010, Nika Gilauri, Prime Minister of Georgia, indicated that economic growth in 2010 may exceed the consensus forecast of 2%. The Prime Minister’s view is based on the positive trends of selected fiscal indicators. For instance, in January 2010, the Value Added Tax (VAT) revenue, which normally is highly sensitive to GDP growth, grew by 12% y-o-y, while the overall tax revenue collection was up 5% y-o-y. The turnover figures of the VAT registered companies show positive trend in Q4’09, continuing in January 2010. Q4 turnover in 2009 was up 1.5% y-o-y, suggesting modest economic growth. In December 2009, the y-o-y growth of the turnover accelerated to 2.7%.
“I am delighted to note that all indicators suggest that economic growth returned to Georgia in Q4 2009. I am highly confident that the GDP growth forecast of 2% will be met in 2010, and take the view that, in the absence of adverse developments in global markets, our growth rate may actually exceed the forecast”, commented Nika Gilauri, Prime Minister of Georgia.
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