Georgia’s GDP grows 3% in Q2 2016

Georgia’s economy is growing – with more than three months left of 2016 Georgia’s economy has hit its projected target of three percent growth.

The National Bank of Georgia (NBG) and various international financial institutions projected Georgia’s economic growth will reach three percent in 2016, however today’s official figures by the National Statistics Office of Georgia (Geostat) showed the economy had already reached this target.

In the second quarter (Q2) of 2016, the real growth of Gross Domestic Product (GDP) of Georgia reached three percent year-on-year (y/y), said Geostat.

The largest shares of GDP by activity were held by:

• Industry - 16.6 percent
• Trade services - 15.1 percent
• Agriculture, hunting and forestry, fishing - 10.6 percent
• Transport and communication services - 9.4 percent
• Public administration - 9.2 percent
• Construction - 8.5 percent
• Real estate, renting and business activities - 6.3 percent
• Health and social work – 6 percent.

The largest shares of GDP by activity in Q2 of 2016 were held by industry, trade and agriculture sectors. Image by Geostat. *Preliminary data 

In Q2 of 2016 real growth was registered in:

• Mining and quarrying - 24.1 percent
• Construction - 12.8 percent
• Hotels and restaurants - 10.8 percent
• Financial intermediation - 9.4 percent
• Other community, social and personal service activities - 8.7 percent
• Manufacturing - 8.3 percent.

Geostat said a decrease in real value-added was felt in the transport sector (-5.8 percent), and in trade services (-2.8 percent).

The statistics agency noted quarterly real GDP growth may differ from monthly rapid estimates as data did not exist in some sectors and estimations were used instead.

In March this year Georgia’s Prime Minister Giorgi Kvirikashvili said the country was preparing for "a huge boost in economic growth”. The goal was to achieve 3.5 percent economic growth in 2016 and six percent in 2017.

At the time Georgia’s Economy Minister Dimitry Kumsishvili also said he believed the country’s economy will grow more than three percent this year.