BAKU, Azerbaijan, Nov. 30
By Tamilla Mammadova – Trend:
Estimated real Gross Domestic Product (GDP) declined by 3.9 percent in October 2020 year-on-year and by 5.1 percent in the first ten months of 2020 year-on-year, Trend reports referring to National Statistics Office (Geostat).
In October 2020 the estimated real growth compared to the same period of the previous year was posted negative in almost all activities, other than financial and insurance activities.
Geostat produces monthly rapid estimates of real GDP growth rate using administrative data on VAT taxpayers’ turnover, fiscal and monetary statistics.
Compilation of rapid estimates is an internationally adopted practice to obtain a preliminary monthly growth rate of real GDP. For those sectors, where preliminary monthly data do not exist (e.g. agriculture. non-observed economy etc.), estimations are based on the data for previous periods.
Furthermore, the data on VAT taxpayers’ turnover for the previous months may be updated on a monthly basis, resulting in corresponding adjustments of real GDP growth rate estimates.
Georgia is forecast to return to the economic growth of 4.5 percent in 2021 thanks to expected recoveries in tourism, private consumption, investment, and net exports, following a contraction this year due to the coronavirus pandemic, says a new Asian Development Bank (ADB) report, the Asian Development Outlook 2020 Update.
The World Bank’s recent report Global Economic Prospects 2020 reads that the real GDP will decline in 2020 in Georgia and is estimated to be -4.8 percent, with the projected recovery of growth at 4 percent in 2021.
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