National Bank of Georgia talks negative impact of COVID-19 on country's economy
BAKU, Azerbaijan, August 12
By Tamilla Mammadova – Trend:
In the first quarter of 2020, Georgian GDP increased by 2.2 percent compared to the same period last year, Trend reports with reference to the National Bank of Georgia (NBG).
As reported, the service sector made the largest contribution to GDP (1.4 percentage points), the contribution of industry was 0.8 percentage points, and the contribution of agriculture was almost zero.
According to NBG, the negative impact of the coronavirus pandemic on the Georgian economy began in February.
The tourism industry in Georgia, as well as in the world, has suffered the most, the bank said.
A small number of foreign guests visited Georgia in February, while in March, the entry of foreign guests into the country practically stopped after the declaration of a state of emergency and the closure of the borders.
"In recent years, the main driver of economic growth in Georgia has been the tourism industry, which brings together interconnected sectors and covers a large part of the economy as a whole," the bank added.
As reported, real estate transactions in which foreign participation is significant increased by 1.6 percent. In the first quarter, and the total contribution of the two sectors (tourism and real estate) to economic growth amounted to 0.2 percentage points.