Georgian economy grows 10.3% in August, 12% in the first eight months of 2021
Georgian Prime Minister Irakli Garibashvili said that the economic growth data of Georgia 'is unprecedented in the region'. Photo: Nino Alavidze/Agenda.ge.
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The estimated real gross domestic product (GDP) growth rate in August 2021 amounted to 10.3% year-on-year and 12% in January-August 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
- Electricity, gas, steam and air conditioning supply
- Hotels and restaurants
- Transportation and storage
- Arts, entertainment and recreation
A decline was registered in construction, mining and quarrying.
Georgian Prime Minister Irakli Garibashvili said that the economic growth data of Georgia 'is unprecedented in the region' and it became possible to achieve high economic growth thanks to state programmes such as Preferential Agro-Credit, Produce in Georgia, Plant the Future and others.
He said that starting 2022, the government will implement larger programmes and will invest 2.5 billion GEL in the development of local production while 7 billion GEL will be invested in agriculture.
The Georgian economy is expected to grow by 8.5% in 2021 driven by an expansion in agriculture, industry, and services and the gradual lifting of restrictions imposed due to the coronavirus disease (Covid-19) pandemic, the Asian Development Bank (ADB) said in its annual flagship economic publication the Asian Development Outlook 2021 Update.
Global ratings agency Moody's expects the Georgian economy to grow by 7.3% in 2021, following a 6.2% contraction in 2020, 'driven by the collapse of the tourism sector and the domestic impact of lockdowns and movement restrictions in the wake of the pandemic', says Moody's.
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). The 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'.
The estimated real gross domestic product (GDP) growth rate in July 2021 amounted to 9.9% year-on-year and 12.2% in January-July of 2021 year-on-year, show preliminary data from the National Statistics Office of Georgia (Geostat). 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'.
Georgia is leading the South Caucasus region with a projected rebound of 8% this year, says the latest edition of the World Bank’s Economic Update for the region, released today. "Georgia’s recovery is expected to edge down to 5.5% in 2022 and 5% in 2023, as macroeconomic support continues to be removed", reads the report.
Georgian Finance Minister Lasha Khutsishvili has said that the country expects 6% economic growth in 2022, nominal gross domestic product (GDP) amounting to 65 billion GEL (about $20.7 b. / €18.21 b.), while GDP per capita will exceed $5,500 by the end of next year. Khutsishvili asserts that Georgia will ‘fully’ recover to pre-pandemic economic levels and maintain a ‘high’ rate of economic growth.