Georgian economy shrinks 3.9% in October 2020

Estimated real gross domestic product (GDP) declined by 3.9 per cent in October 2020 year-on-year, and by 5.1 per cent in the first ten months of 2020, show the latest data from the National Statistics Office of Georgia (Geostat).

Last month, estimated real growth compared to the same period of the previous year posted downturns in almost all activities, other than financial and insurance activities, said Geostat.

Georgian Finance Minister Ivane Matchavariani said that the new restrictions imposed by the government on November 26 gave grounds to revise the economic growth rate of 2021 downward.

The 2021 state budget was planned with a 4.3 per cent economic growth forecast, however Matchavariani said that there was 'a significant decline in revenues' in November and January and February will be 'severe' because of the new restrictions, which will affect economic growth next year.

Matchavariani projected the economy would experience 4% growth next year.