Page 35 - Small Stans and Causcasus Outlook 2022

3.4 Real economy - Georgia

3.1.1 Retail
Although GeoStat does not produce short-term series for the volume of
retail sales, indirect data reveals robust growth of private consumption
in both 2020 and 2021, indicating most likely a similar trend in the retail
sales.

In 2020, the consumption of households and non-profit institutions
serving households (NPISH) increased by a real 8.8% y/y, while the
gross fixed capital formation contracted by 16.5% y/y. Annual growth
rates of the two elements in 2021 are subject to base effects caused by
the lockdown period in 2020.

Compared to the same periods of 2019 (before the crisis), private
consumption increased by 19% in Q1 2021, by 30% in Q2 and by 24%
in Q3. The annualised growth rates are 9% p.a., 14% p.a. and 11% p.a.
respectively – each of them superior to the 8.8% y/y growth in 2020.

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