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Georgian economy shrinks in 2020

Business Materials 29 January 2021 15:22 (UTC +04:00)

BAKU, Azerbaijan, Jan. 29

By Tamilla Mammadova – Trend:

Georgia's economy constructed by 7.9 percent in December 2020 due to a new lockdown, forcing thousands of businesses and services to close, Trend reports via the National Statistics Office of Georgia (Geostat).

The decline also affected the results of 2020 as a whole and Georgia's gross domestic product fell by 6.1 percent.

According to the quarters, there were such results in Georgia in 2020:

Quarter 1 - 2.3 percent growth;
Quarter 2 - 13.2 percent drop;
Quarter 3 - 5.6 percent drop;
Quarter 4 - 6.5 percent drop.

“In December 2020 the estimated real growth compared to the same period of the previous year was posted negative in the following activities: Accommodation and food service activities, Construction, Arts, entertainment and recreation, Manufacturing, Transportation and storage, Wholesale and retail trade; repair of motor vehicles and motorcycles”, Geostat report reads.

Growth was registered in Financial and Insurance activities, Water supply; sewerage, waste management and remediation activities, Information and communication, Mining and quarrying.

According to the document, VAT taxpayers’ turnover amounted to 8.55 billion lari ($2.6 billion) for the last month, which is 5.1 percent year-on-year. The number of newly registered enterprises is 6.3 percent down in December. Exports were down by 12 percent from January through December.

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