Q2 of 2020: Georgian economy grows 29.9%

Nominal gross domestic product (GDP) amounted to 15.91 billion GEL in the second quarter of 2021, while the real GDP grew by 29.9 percent year-on-year and GDP deflator increased by 10.3% in the reporting period, show the latest data from the National Statistics Office of Georgia (Geostat).

Geostat said that significant contributions to the real GDP growth in Q2 2021 is related to increase in the value added of the following activities: 

• Wholesale and retail trade (53.9%)
• Manufacturing (42.3%)
• Arts, entertainment and recreation (133.6%)
• Transportation and storage (47%)
• Construction (27.3%)
• Accommodation and food service activities (75.5%)
• Financial and insurance activities (45.5%)

A decrease in the real value-added occurred in:

• Agriculture, forestry and fishing (-2.3%)
• Education (-1.4%)

The largest shares of GDP by activity were held by:

• Trade (15.9%)
• Manufacturing (11.6%)
• Real estate activities (9.6%)
• Construction (8.6%)
• Agriculture, forestry and fishing (7.8%)
• Transportation and storage (6.3%)
• Public administration (5.8%)
• Arts, entertainment and recreation (5.4%)

The International Monetary Fund (IMF) projects the Georgian economy to grow 7.7% in 2021, 'a significant upgrade from just a few months ago, which implies that output will exceed its 2019 level this year'.