Georgia’s GDP expands by 8.6% due to new methodology and improved coverage
Geostat has changed accounting methodology to a new Standard of National Accounting (SNA 2008), rebased GDP to year 2015 from year 2010 and recalculated GDP data from 2010 to 2018. According to the SNA 2008, Georgia’s economy in nominal terms expanded by 8.6% to GEL 44.6bn (US$ 17.6bn) in 2018, compared to previously estimated GEL 41.1bn (US$ 16.2bn). Therefore, GDP per capita increased to US$ 4,722 from US$ 4,346 in 2018. Real GDP growth was also revised up to 4.8% in 2018 from 4.7% preliminary estimate. Expansion in nominal GDP level improved the key macro indicators in 2018: public debt to GDP down by 3.3ppts to 38.9%, fiscal deficit to GDP down by 0.2ppts to 2.3%, current account deficit to GDP also down by 0.5ppts to 6.8% in 2018.
Exports up 4.5% y/y in October 2019
In October 2019, exports increased 4.5% y/y to US$ 316.5mn, while import declined by 2.1% y/y to US$ 848.0mn and the trade deficit narrowed 5.6% y/y to US$ 531.5mn, according to Geostat’s preliminary figures. In 10M19, trade deficit was down 10.8% to US$ 4.3bn as exports increased by 10.4% y/y to US$ 3.0bn and imports were down 3.1% y/y to US$ 7.3bn. Detailed foreign trade statistics will be available on November 19, 2019.
International arrivals up 8.8% y/y in October 2019
Total international arrivals (tourists and same-day arrivals) to Georgia increased by 8.8% y/y to 0.67mn persons in October 2019, according to GNTA. This growth was mostly driven by tourist arrivals increasing by 7.8% y/y (66.0% of total), while same-day arrivals also increased by (+10.9% y/y to 0.23mn trips). Out of top countries, in October 2019, international visitors increased from Armenia (+12.7% y/y), Azerbaijan (+7.7%), Turkey (+16.9% y/y), Israel (+56.9% y/y) and Ukraine (+22.5%). Meanwhile, visitors continued to decline from Russia (-15.2% y/y) and Iran (-34.5% y/y). Visitors from the EU were up 32.2% y/y to over 55,700 visitors, with Germany, Poland and Ireland driving the growth. In 10M19, total international visitors stood at 6.6mn (+6.2% y/y), of which tourist arrivals reached 4.4mn (+6.0% y/y) persons. Meanwhile, tourism revenues stood at US$ 2.8bn (+0.9% y/y) in 10M19 according to NBG.
Money transfers up 11.5% y/y in October 2019
In October 2019, money transfers increased 11.5% y/y to US$ 153.2mn, after growing 13.9% y/y in the previous month, according to NBG. From major remitting countries, money transfers were up from Italy (+24.6% y/y, 13.7% of total), Greece (+3.9% y/y, 10.4% of total), USA (+6.1% y/y, 9.9% of total), Israel (+13.3% y/y, 8.9% of total) and Turkey (+6.5% y/y, 5.2% of total), while remittances were down from Russia (-4.5% y/y, 24.7% of total). Overall, in 10M19 money transfers were up 8.8% y/y to US$ 1.4bn.
