Page 13 - GEORptDec19
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3.0 Macro Economy
Georgia - Main Macro 2013 2014 2015 2016 Indicators
2017 2018
Q1 Q2 2019 2019
GDP real growth (y/y, %)
3.4 4.6 2.9 2.8 4.8 4.7 4.9 4.5
GDP (per capita, $) 3,599.6 3,676.2 3,766.6 3,864.6 4,046.8 4,345.5 981.0
GDP: Final consumption expenditure, (GEL mn)
23,671.8 25,570.7 27,318.7 28,241.5 30,630.6 32,652.8 8,200.6 8,313.3
GDP: Gross capital formation, (GEL mn)
6,652.9 8,688.8 10,004.3 11,136.5 12,264.8 13,675.7 2,693.8 3,539.9
GDP: Exports, (GEL mn)
11,997.9 12,518.3 14,206.8 14,837.8 19,023.7 22,622.8 5,244.8 6,638.5
GDP: Imports, (GEL mn)
15,475.2 17,627.3 19,774.3 20,187.5 23,559.0 27,385.8 6,394.0 7,465.5
Source: bne IntelliNews, CEIC
3.1 Macroeconomic overview
Georgia’s economy grows 5.7% y/y in October
GDP beats expectations with Q3 acceleration to 5.7%
Georgia’s GDP increased by 5.7% y/y in October and by 5.1% y/y in January-October, according to rapid-estimate data issued by statistics office Geostat. The country’s economy expanded 4.8% in 2018.
In October, significant year on year real growth year was posted in the sectors of manufacturing, hotels and restaurants, information and communication.
Georgia’s GDP growth accelerated to 5.7% in the third quarter of 2019, up from 4.5% y/y in Q2 and 4.7% y/y in Q1, according to preliminary data released by national statistics office Geostat on October 31.
However, a deceleration is visible within the quarter, with growth falling from 6.1% y/y in July to 5.8% in August to 5.2% y/y in September. In principle that might be attributed to the sanctions imposed by Russia on Tbilisi following anti-Kremlin demonstrations by Georgians. They translated into in a smaller number of tourist arrivals.
In September, the value generated by construction, transport, trade, manufacturing, hotels and restaurants made the most significant contribution to overall growth.
Mining and quarrying was among sectors making a lower contribution to growth.
Average growth for the first three quarters of the year stood at 5.0%, compared to 4.8% in the same period of 2018. The government’s fiscal policy is run according to an envisaged 2019 growth outcome of 4.5%.
The government has sketched its 2020 budget planning on the assumption of 5% GDP growth next year.
13 GEORGIA Country Report December 2019 www.intellinews.com
