Baku, Azerbaijan, September 25
By Tamilla Mammadova – Trend:
Georgia's growth is estimated at 4.9 percent in the first half of 2019, down from 5.4 percent in the same period of 2018 but outperforming last year as a whole, Trend reports citing the report of Asian Development Bank (ADB).
As reported, in services, 8.1 percent expansion reflected gains in tourism, trade, transport, health, and education.
Meanwhile, despite upticks in cottage industries and in utilities, industry contracted by 2.7 percent, with construction down by 9.6 percent and mining and quarrying by 3.8 percent. Agriculture shrank by 0.3 percent.
Supporting growth on the demand side was increased by public investment at the end of 2018, large refunds of value added tax advances, faster credit growth, and an 8 percent rise in remittances that encouraged private consumption.
However, total investment including from private sources contracted by 3.1 percent in the first quarter of 2019, a significant decline from growth of 11.2 percent in the same period of 2018. Given the modest outlook for growth in private investment, this update reduces its growth forecasts for both 2019 and 2020. The potential risks to the economic prospects include regional geopolitical tension.