Q3 2021: Georgian economy up 9.1%

Georgian Finance Minister Lasha Khutsishvili said that Georgia’s economy will ‘fully recover’ from losses of the last year and be 2.6% higher than it was in 2019, noting that ‘by the end of 2022, the volume of our economy will approach 65 billion GEL, and GDP per capita will be more than 5,600 USD.’ Photo: Nino Alavidze/Agenda.ge.

Agenda.ge, 20 Dec 2021 - 14:50, Tbilisi,Georgia

Nominal Gross Domestic Product in Georgia equalled 15.99 billion GEL in the third quarter of 2021, and real GDP grew by 9.1%, while the GDP deflator (inflation measure) increased by 9.4% in the reporting period, preliminary data from the National Statistics Office of Georgia (Geostat) show. 

The highest real GDP growth was registered in the following sectors:

  • Wholesale and retail trade (+12.3%)
  • Transportation and storage (+29%)
  • Electricity, gas, steam and air conditioning supply (78.8%)
  • Accommodation and food service activities (49.8%)
  • Arts, entertainment and recreation (48.1%)
  • Human health and social work activities (23.8%)
  • Financial and insurance activities (20.3%)
  • Manufacturing (7.3%)

A decrease was registered in the following activities:

  • Construction (-29.7%)
  • Education (-7.8%)
  • Agriculture, forestry and fishing (-2.9%)
  • Public administration and defence; compulsory social security (-3.9%)

Image: Geostat.

The largest shares of GDP by activity are held by trade (16.7%), manufacturing (11.9%), followed by real estate activities (9.4%), construction (8.4%), agriculture, forestry and fishing (8.2%), public administration (5.9%), transportation and storage (5.6%), financial and insurance activities (5.0%),” Geostat reports. 

Georgian Economy Minister Natia Turnava stated earlier that the inflation rate in Georgia will return to 3% by the end of 2022. The inflation rate in November this year grew by 0.6% compared to the previous month, with annual inflation amounting to 12.5%.

Georgian Finance Minister Lasha Khutsishvili said that Georgia’s economy will ‘fully recover’ from losses of the last year and be 2.6% higher than it was in 2019, noting that ‘by the end of 2022, the volume of our economy will approach 65 billion GEL, and GDP per capita will be more than 5,600 USD.’

The Georgian parliament approved the updated state budget 2022 for Georgia on December 17, planned with an economic growth forecast of 6%. The budget total is 19.1 billion GEL.