Q2 of 2020: Georgian economy shrinks 12.3%

Nominal gross domestic product (GDP) amounted to 11.21 billion GEL in the second quarter of 2020 in Georgia. Photo: Nino Alavidze/Agenda.ge.

Agenda.ge, 18 Sep 2020 - 14:23, Tbilisi,Georgia

Nominal gross domestic product (GDP) amounted to 11.21 billion GEL in the second quarter of 2020 in Georgia, while GDP declined by 12.3 per cent year-over-year and the GDP deflator also declined by 6.3 per cent in the reporting period, show the latest data from the National Statistics Office of Georgia (Geostat).

A decrease in the real value-added occurred in:

  • Wholesale and retail trade; repair of motor vehicles and motorcycles (-13.2 per cent)
  • Construction (-24.5 per cent)
  • Accommodation and food service activities (-40 per cent)
  • Transportation and storage (-22.6 per cent)
  • Manufacturing (-12.1 per cent)
  • Professional, scientific and technical activities (-28.8 per cent)
  • Financial and insurance activities (-15.5 per cent)
  • Administrative and support service activities (-54.7 per cent)
  • Arts, entertainment and recreation (-24.1 per cent)

Real growth was registered in the following activities: 

  • Human health and social work activities (14.3 per cent)
  • Education (11.7 per cent)
  • Agriculture, forestry and fishing (4.7 per cent)
  • Mining and quarrying (6.4 per cent)

Georgia is forecast to return to economic growth of 4.5 per cent in 2021 thanks to expected recoveries in tourism, private consumption, investment, and net exports, following a contraction this year due to the coronavirus pandemic, says a Asian Development Bank (ADB) report, the Asian Development Outlook 2020 Update.

Meanwhile, the World Bank’s report Global Economic Prospects 2020 reads that the real GDP will decline in 2020 in Georgia and is estimated to be -4.8 per cent, with projected recovery of growth at 4 per cent in 2021.