Real GDP grew by 6.9% y/y in October 2021
Georgia’s economy grew by 6.9% y/y in October 2021, the same growth rate as in September 2021, based on Geostat’s rapid estimates. Notably, real GDP of October 2021 was also up by 2.7% compared to October 2019 level. Cumulatively, in 10M21, growth is estimated at 10.5% y/y, surpassing 10M19 level by 3.7%. In October, growth was recorded in manufacturing, transportation and storage, arts, entertainment and recreation, electricity, hotels and restaurants, trade and financial and insurance activities. Meanwhile, growth was down in construction sector. We forecast real GDP growth at 10.5% in 2021.
Inflation was 12.5% y/y and 0.6% m/m in November 2021
Annual CPI inflation retreated to 12.5% in November 2021, after a 12.8% inflation in previous month, according to Geostat. Core inflation (non-food, non-energy) was 6.1% and core inflation excluding tobacco was also 6.1% in November. By categories, annual inflation was mainly driven by price changes in food and non-alcoholic beverages (+17.0% y/y, +5.35ppts), transport (+20.2% y/y, +2.50ppts), housing, water, electricity, gas and other fuels (+11.5% y/y, +1.68ppts), health (+8.5% y/y, +0.66ppts), restaurants and hotels (+10.9% y/y, +0.62ppts) and furnishings, household equipment and maintenance (+11.6% y/y, +0.60ppts) categories. On a monthly basis, there was a 0.6% inflation in November 2021, reflecting price increase in food and non-alcoholic beverages (+0.6% y/y, +0.22ppts) and transport (+1.7% y/y, +0.22ppts) categories.
