WB: Georgia’s economy expands by 4.7%

Baku, Azerbaijan, October 9

By Tamilla Mammadova – Trend:

Georgia’s economy expanded by 4.7 percent in the first half of 2019, driven by strong exports and consumption, Trend reports referring to the World Bank report.

Growth is projected to slow to 4.4 percent for the full year as a ban on flights from the Russian Federation impacts tourism. Growth will moderate in 2020 as the external outlook weakens, but is projected to recover in 2021, helping to improve living conditions, the report said.

Real GDP growth accelerated in the first half of 2019, to 4.7 percent (reaching 5.1 percent year on year in July). Domestic demand was supported by higher consumption in the first half of the year. Investment contracted as infrastructure projects were completed and foreign direct investment (FDI) declined.

Net exports improved considerably reflecting slowing imports and increased re-exports of used cars and copper ore. On the supply side, all sectors except for mining and electricity production contributed positively to growth. Construction sector output, which contracted during most of 2018 and early 2019, appears to have bottomed out.

However, recent developments (a ban on flights from Russia imposed by the Russian authorities, the TBC Bank management case, and a reshuffling of the government) have weakened sentiment and will negatively affect growth.

Poverty declined as economic growth created jobs. The unemployment rate fell to 12.7 percent in 2018, helping to lower the poverty rate, as measured at the national poverty line, to 20.1 percent. Rural poverty fell by 3.4 percentage points, while urban poverty fell by 0.6 percentage points. These trends continued in the first half of 2019 as the unemployment rate declined further, to 12 percent. While increased employment opportunities mostly benefited the country’s urban population, the urban unemployment rate remains high (at 17 percent).

Some of this improvement may be reversed as tourism is affected by the Russian flight ban and higher inflation affects purchasing power. Annual inflation accelerated to 4.9 percent in July due to the weakening of the lari and higher tobacco excise taxes. In response, the authorities tightened the policy interest rate in early September by 50 basis points to 7 percent.

Iran plans to increase nuclear energy over next twenty years – minister
Iran plans to increase nuclear energy over next twenty years – minister
Iran's president-elect Raisi talks government's future plans, JCPOA
Iran's president-elect Raisi talks government's future plans, JCPOA
Next stage of Iran's nuclear discussions may be the last stage – MFA
Next stage of Iran's nuclear discussions may be the last stage – MFA
Loading Bars
Latest
TAP’s gas supplies to Europe getting close to 3 bcm
Baku-Tbilisi-Ceyhan transported over 430 million tons of oil to world markets
Georgian Credo Bank plans to purchase another bank
Visa to buy Swedish fintech Tink for $2.2 billion
Georgia negotiating to attract Ukrainian and Belarusian airlines
Uzbekistan’s number of users of remote banking services increases
Agriculture Ministry talks wheat harvesting process across Azerbaijan
Turkmen Railways open tender for purchase of spare parts for locomotives
Azerbaijan unevils number of citizens vaccinated on June 24
Global oil price to drop due to growth of eco-friendly car production - analyst
Azerbaijan, Ukraine establish joint Business Council
Iran's Bouali Sina Petrochemical Company launches new desulfurization unit
Azerbaijan confirms 51 more COVID-19 cases, 76 recoveries
Small-unit production line launched at Yutong bus plant in Kazakhstan
Kazakhstan increases imports of Greek-made goods
Kazakh oilfield construction company to buy pipes via tender
Uzbekistan continues modernization of Fergana refinery
France’s import of grains and legumes from Turkey up
Airline companies operating in Georgia, increasing frequency of flights
Azerbaijan takes part in SCO's First Economic Forum (PHOTO)
Kazakhstan joins initiatives of World Trade Organization to combat COVID-19
A humanitarian partnership in times of COVID (PHOTO)
Saudi Arabia considers developing industrial zone in Oman
NIO cars arriving in Israel for Mobileye robotaxi trials
COVID-19 vaccination in Russia remains voluntary
Moderna hopes to deliver COVID vaccines to Germany faster
Wheat harvesting continues in villages of Azerbaijan's Tartar near liberated lands (PHOTO)
New ambassador of Kyrgyzstan to Azerbaijan appointed
Saipa, Iran Khodro, Isfahan Refinery keep Tehran Stock Exchange's upward trend
Silk Way West Airlines to enter the global pharmaceutical logistics market with GDP certification
Georgia eyes to introduce mandatory unemployment insurance mechanism
Iranian oil minister talks about work done in oil, gas sectors
Iran’s Bahar Azadi gold coin price dips
Azerbaijan plays crucial role in connectivity of INSTC with Indian port - ambassador
Export value of Georgia's domestic beer down
Uzbekistan among top-10 countries of world in gold mining - Forbes
Azerbaijani president, first lady view conditions created at Gulustan Palace after renovation (PHOTO)
Certain cities, villages in Iran supplied with gas
Innovative technologies in Azerbaijan ensure transparency in rendering services - B.EST Solutions CEO
Several industrial investment projects to be commissioned in Kazakhstan's Shymkent
Azerbaijan holds working group meeting on clearing mines, unexploded ordnance in de-occupied lands (PHOTO)
Georgia, Ukraine and Moldova to discuss further cooperation with EU
Iran's exports grow in value, volume - Iran Customs Administration
Iran Customs Administration shares data on Iran’s imports
Iran reveals COVID-19 data for June 24
Iran discloses amount of foreign investment attracted in Markazi Province
Rising oil prices to help improve balance sheets in Gulf – Capital Economics
Kazakhstan boosts trade with Belarus despite COVID-19
Payoneer set for Nasdaq listing as SPAC approves merger
Iran's exports through Bilasuvar border checkpoint up
Economic co-op between Azerbaijan, UAE expanding - ministry (PHOTO)
Kazakhstan boosts manufacturing of passenger cars
Website of Belgian VRT TV channel shows footage of Azerbaijan's liberated Aghdam
Russia with other OSCE MG co-chairs continues to help Azerbaijan, Armenia to build mutual confidence - FM
Uzbekistan ready to assist China in construction of pharmaceutical plant in Navoi region
Lion's share of Uzbek cherry imports accounts for Kazakhstan
EU financing intellectual property project in Azerbaijan
bp completes preparations for first SWAP exploration well
Algeria, Azerbaijan discuss issues of expanding investment co-op
Azerbaijan publishes 5M2021 petroleum coke export data
Turkey reveals 4M2021 data on cargo transshipment via Trabzon port
Turkmenistan interested in attracting US investments for local high-tech development
bp reveals time of starting second maintenance program at ACG
Azerbaijan, Saudi Arabia discuss priority areas of mutual economic co-op
Azerbaijan opens new military unit of State Border Service in liberated Gubadly (PHOTO)
U.S. administers 319.9 mln doses of COVID-19 vaccines
Germany's Merkel says EU should seek direct contact with Putin
Georgia's labor market becoming popular for Turkish job seekers
Interest in COVID-19 vaccination growing in Azerbaijan - TABIB
Azerbaijani oil prices up
Azerbaijan shares footage from Garakechdi village of Lachin district (VIDEO)
Turkey second main exporter of electric cars to Uzbekistan
SOCAR-Petrofac JV inks $25M contract for Azeri-Chirag-Gunashli
Saudi Arabia's Bank AlJazira markets AT1 Islamic bonds
bp details plans for projects in Azerbaijan by late 2021
Georgia shares data on COVID-19 cases for June 24
Kazakhstan’s freight transportation operator opens tender for equipment maintenance
President Japarov to visit Tajikistan
Indian strain of coronavirus detected in Uzbekistan
PMGKAY, India’s Covid reduction programme, praised by UN wing: Official
Yusuffali elected as chief of Indian business group IBPG in Abu Dhabi
Covid-19: India likely to have vaccine for children above 2 years by September
IsDB, ISFD NGOs Empowerment for Poverty Reduction Program: Closing webinar for TADAMON Crowdfunding Academy for CSOs held in Kazakhstan
Digital connectivity between India and the EU’s ‘fertile zone’ to explore: S Jaishankar
bp says Shah Deniz, ACG platforms operated uninterruptedly during pandemic
India crosses 20 crore mark in cumulative covid-19 vaccine coverage
Pfizer In "Final Stages" Of Approval For Covid Vaccine In India: CEO
Digital connectivity between India, EU 'fairly fertile area' to be explored, says Indian EAM
"No Evidence Delta+ Will Cause Possible 3rd Wave": Top Genome Sequencer
EDB eyes opening representative office in Uzbekistan
Oil gains as draw in U.S. crude stocks reinforces outlook for robust demand
Lendbuzz to expand Israel team, after raising $360m
US ambassador to return to Moscow within days
VEON telecommunication company to launch 5G in Georgia
Vegetables and fruits in Kyrgyzstan rise in price by 16.4%
Iran boosts imports of mining products from Turkey
North-South corridor to be alternative to Suez Canal
Iranian currency rates for June 24
Natural gas prices to fall for Turkey amid diversification, new discoveries
Airlines urged to tighten Airbus A320 checks after COVID storage
All news