GDP growth rate reaches 25.8% in May 2021

The estimated real gross domestic product (GDP) growth rate in May 2021 amounted to 25.8% year-on-year and 11.5% in January-May of 2021 year-on-year, show preliminary data from the National Statistics Office of Georgia (Geostat).

Last month the following industries of the economy posted growth compared to the same period of the previous year:

• Manufacturing
• Financial and Insurance activities
• Trade
• Real estate activities
• Hotels and restaurants
• Construction
• Transportation and storage

The Georgian economy is expected to grow by 3.5% in 2021, rebounding with the gradual lifting of the Covid-19 pandemic restrictions and revival of domestic demand, reads the Asian Development Bank (ADB) Outlook 2021.

The ADB projected Georgia’s gross domestic product (GDP) growth to accelerate to 6% in 2022 as a full reopening of the economy and expected recovery in tourism will boost travel and commerce.

The ‘Europe and Central Asia Economic Update’ published by the World Bank reads that the Georgian economy is unlikely to recover to pre-Covid levels until late 2022. 

The World Bank says that the Georgian economy is projected to expand to 4% in 2021 and then to firm to 5% in 2022.