Sep 19, 2018

GDP growth at 5.5% in Q2 2018

Quick Update

  • Despite temporary negative contribution of large infrastructure projects also related to fiscal spending, real GDP growth stood at solid 5.5% YoY in Q2 2018. In nominal terms, GDP increased by 10.6% YoY over the same period.
  • Fiscal deficit stood at 0.4% of GDP (41 mln GEL), significantly lower compared to the 4.1% (375 mln GEL) of deficit registered during the same period previous year.
  • GDP growth in Q2 2018 was driven by wide range of sectors, primarily by trade and repairs, manufacturing, real estate and financial intermediation. Agriculture and construction sector affected the growth negatively.
  • Reduction of construction sector value added was primarily due to the one-off factors related to the several large scale infrastructure projects.