In the first half of 2018, Gross Domestic Product (GDP) of Georgia was worth 19.3 billion GEL, and the real GDP growth amounted to 5.4%. In the first two quarters economy of Georgia was strongly affected by external factors. Improved economic conditions in trading partner countries positively impacted exports and remittances. Revenue from tourism also increased. At the same time, higher imports indicate increased domestic demand. In August, the National Bank of Georgia once again reviewed the estimate of real GDP growth rate for 2018 and fixed it at 5.5%. Similarly, 5.5% is forecasted by the International Monetary Fund (IMF). However, these forecasts do not consider new regulations on loans that are expected to reduce domestic demand and, therefore, the economic growth rate.
Nearly a third of gross domestic product is created in three sectors - trade, manufacturing and construction. In the first half of 2018, wholesale and retail trade constituted 14.5% of GDP. Manufacturing industry amounted to 9.0%, and construction sector was 7.4%. During this period real growth was observed in almost all sectors. The exception was agriculture, which has been declining since 2016.
Source: BAG
