Georgia's GDP Declined by 12.3% in Q2 of 2020

Georgia's GDP Declined by 12.3% in Q2 of 2020

The FINANCIAL -- National Statistics Office of Georgia published data of Gross Domestic Product of Georgia (2020 II quarter, preliminary data). In Q2 2020 the nominal GDP amounted to GEL 11 210.0 million. The real Gross Domestic Product (GDP) declined by 12.3 percent YoY, while the GDP deflator increased by 6.3 percent.

Geostat also released data on the number of decreases in the real value-added of various activities: repair of motor vehicles and motorcycles – 13.2% decrease; construction – 24.5% decrease; accommodation and food service – 40% decrease; transportation and storage – 22.6% decrease; manufacturing – 12.1% decrease; professional, scientific, technical activities – 28.8% decrease; financial and insurance activities – 15.5% decrease; administrative and support service activities – 54.7% decrease; arts, entertainment, and recreation – 24.1% decrease, according to civil.ge

Real growth occurred in Human health and social work activities (14.3 percent), Education (11.7 percent), Agriculture, forestry, and fishing (4.7 percent), Mining and quarrying (6.4 percent).

The largest shares of GDP by activity are held by Trade (14.6 percent), Real estate activities (12.7 percent) and Agriculture, forestry and fishing (10.2 percent), followed by Manufacturing (9.9 percent), Public administration and defense; compulsory social security (7.5 percent), Construction (6.8 percent), Transportation and storage (6.1 percent), Education (5.6 percent). Revised data will be published on November 16, 2020.

It is important to keep in mind that the Calculation of the quarterly Gross Domestic Product is based on monthly and quarterly data. The data of annual surveys usually differ from the quarterly data. Therefore, arises the necessity of adjusting the quarterly GDP considering annual survey results. After receiving the annual survey results for the previous year, four quarters of the previous year are adjusted along with the first and the second quarters of the current year. Therefore, during the annual revision of the 2018 year indicators of Q1 and Q2 2019 were also revised, while in November 2020, after receiving the data of annual surveys for 2019, the final revision of the 2019 quarters data will be conducted.

It is noteworthy that the National Statistics Office of Georgia has also published data of indicators of using information and communication technologies (ICT) in households (2020.) According to the “Survey on Information and Communication Technologies Usage in Households” results of 2020, 83.8 percent of Georgian households have internet access, which is 4.6 percentage points higher compared to the previous year. The share of households with internet access increased by 4.6 percentage points for both urban and rural areas and amounted to 90.7 and 74.5 percent, respectively. The value of this indicator by regions is highest in Tbilisi and in Adjara A.R., 93.5, and 91.9 percent, respectively. Read more.

August 2020: Inflation rate in Georgia

Author: The FINANCIAL

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