Georgian economy shrinks 0.7% in September 2020

Estimated real gross domestic product (GDP) declined by 0.7 per cent in September 2020 year-on-year and by five per cent in the first nine months of 2020 year-on-year, show the latest data from the National Statistics Office of Georgia (Geostat).

Economic growth rate was minus 0.7 per cent in September, which directly indicates the serious potential for rapid economic recovery and recovery of the country. Based on this data, the international financial organisations, our partners, state that Georgia is the country that has the most real chance to be a leader in the region in terms of economic recovery. We must do everything we can to maintain this success", said Georgian Prime Minister Giorgi Gakharia.

In September 2020 estimated real growth compared to the same period of the previous year was negative in: 

• Transportation and storage
• Accommodation and food service activities
• Arts, entertainment and recreation
• Construction
• Professional, scientific and technical activities
• Information and communication

On the other hand, increase was registered in:

• Manufacturing
• Mining and quarrying
• Wholesale and retail trade
• Financial and insurance activities

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 new Asian Development Bank (ADB) report, the Asian Development Outlook 2020 Update.

The World Bank’s recent 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.