news

Real GDP shrinks 5.6% y/y in 3Q20 
Georgia’s real GDP contracted by 5.6% y/y in 3Q20 based on Geostat, revised down from -3.8% y/y rapid estimate figure. In 3Q20, the real growth was positive in the following sectors: mining (+14.7% y/y), healthcare (+6.6% y/y), education (+5.6% y/y), public administration (+4.3% y/y), construction (+2.0% y/y) and agriculture (+1.5% y/y). Meanwhile, largest contraction was reported in tourism-related sectors: accommodation & food services (-53.1% y/y), art & entertainment (-32.4% y/y) and transportation & storage (-25.0% y/y). Overall in 9M20, real GDP growth was down 5.8% y/y. 

Trade deficit down 11.2% y/y in November 2020 
In November 2020, trade deficit narrowed by 11.2% y/y to US$ 418.1mn according to Geostat’s preliminary figures, as exports decreased by 13.4% y/y to US$ 301.1mn, while imports fell by 12.1% y/y to US$ 719.2mn. In 11M20, trade deficit was down 18.9% y/y to US$ 4.2bn as exports decreased by 11.3% y/y to US$ 3.0bn and imports were down 15.9% y/y to US$ 7.2bn. Detailed foreign trade statistics will be available on December 21, 2020. 

Money transfers up 12.5% y/y in November 2020 
In November 2020, money transfers increased by 12.5% y/y to US$ 169.9mn, after growing 18.6% y/y in previous month, according to NBG. From major remitting countries, money transfers increased strongly from Italy (+27.7% y/y, 14.9% of total), USA (+35.6% y/y, 11.6% of total) and Greece (+15.4% y/y, 10.8% of total). Meanwhile, remittances declined from Russia (-16.0% y/y, 18.7% of total). Overall, in 11M20 money transfers were up 8.0% y/y to US$ 1.7bn.