Page 13 - GEORptDec20
P. 13
Georgia’s GDP contracts 12.3% y/y in Q2
Georgia’s GDP contracted by a real 12.3% y/y in Q2, while in nominal terms it reached Georgian lari (GEL) 11.21bn ($3.6bn), according to the first detailed quarterly data released by statistics office Geostat.
The country’s economy thus posted a modest 2.2% y/y advance in Q1 but suffered a 5.8% y/y contraction in H1.
The most marked decline in Q2 was in hotel/restaurant/café (HoReCa), which declined some 40% y/y. Most sectors posted negative performances, but agriculture (4.7% y/y), mining (6.4% y/y), healthcare and social (14.3% y/y) and education (11.7% y/y) were in positive territory.
The largest shares of GDP by activity were taken by trade (14.6%), real estate activities (12.7%) and agriculture, forestry and fishing (10.2%), followed by manufacturing (9.9%), construction (6.8%), transportation and storage (6.1%) and education (5.6%).
3.2 Macro outlook
IMF completes seventh review under EFF arrangement with Georgia
An International Monetary Fund (IMF) staff team led by Mercedes Vera Martin, after virtual discussions held during October 5 to November 6, reached a staff-level agreement on the conclusion of the Seventh Review under the Extended Fund Facility (EFF) arrangement that will release upon the IMF board’s approval a $121mn tranche.
Performance under the IMF-supported programme was satisfactory in the first half of 2020, the Fund said in a statement.
Consideration by the executive board is expected in December.
Completion of the review will make SDR79mn ($112mn ) available to Georgia, bringing total disbursements under the EFF arrangement to SDR406mn ($576mn).
The Fund maintained its 5% GDP decline forecast for Georgia in 2020 issued in October, but revised downwards its forecast for the recovery next year to 4.3% from 5%, citing the effects of the Nagorno-Karabakh conflict in the region and the rising number of coronavirus (COVID-19) cases in Georgia. The medium-term growth potential was maintained intact at 5.25%, though, supported by infrastructure spending and sustained structural reforms to
13 GEORGIA Country Report December 2020 www.intellinews.com
