Page 14 - GEORptOct19

Georgia GDP growth eases to 4.5% in Q2
perspective.
The Asian Development Bank (ADB) on September 25 cut its 2019 growth outlook for Georgia to 4.7% from 5.0%. Also, in its Asian Development Outlook 2019 Update, the ADB changed its anticipated 2020 GDP expansion for the South Caucasus country from 4.9% to 4.6%.
Georgia’s GDP increased by 4.5% in Q2, slowing from the 4.9% growth recorded in Q1, national statistics office Geostat announced on September 18 in an initial estimate. ​The figure marks a downward revision from the 4.9% flash estimate issued on July 31.
Against a backdrop of increased external risks, the National Bank of Georgia (NBG) is forecasting real GDP growth of 4.5% this year, versus its prior forecast of 5.0%, according to a monetary policy report released by the central bank. The government assumed 4.5% growth when drafting the budget for 2019.
Manufacturing, which accounts for over 10% of GDP in Georgia, contracted by 4.5% in value added terms in the quarter while construction, behind nearly 9% of GDP, contracted by 4.6% y/y.
Growth was driven by a 7.4% y/y advance of services provided to households (retail included), hotels and restaurants (+14.1% y/y), transport (+17.9%) and real estate (+16.9% y/y).
14​ GEORGIA Country Report​ October 2019 ​ ​www.intellinews.com