Geostat Reports H1 5.2% GDP Growth

Georgia’s 2011 second quarter real GDP growth slowed to 4.7% year-on-year, after an increase of 5.8% in the previous three months, according to preliminary figures released by the state statistics office, Geostat, on September 19.

Real GDP growth in the first half of this year was 5.2%. The growth was 6.6% in the same period of last year.

Mining sector suffered 13.6% contraction in the second quarter and construction sector contracted 3.9% in the same period, according to the preliminary figures.

Financial sector grew 29.1% y/y in the second quarter; hotel and restaurant business increased 11.6% and agriculture grew 4.9 – the largest growth for the sector since 2007, according to Geostat. Agriculture suffered 1.7% contraction in 2010.

Industrial sector and trade made about third of the country’s GDP in the second quarter of 2011 with 16.5% and 15.9%, respectively; share of government spending was 12.2%; transport and communication sector – 11.3%; agriculture – 9.8% and healthcare – 6.3%.