Economic Outlook and Indicators

www.pmcg-i.com Gross Somestic Product - 2013 Issue #23 M16.04.2014

In 2013, real GDP increased (3.2%; 463.0 mln.GEL) compared to 2012. In 2013, the largest growth was in agriculture (9.8%; 134.4 mln.GEL) compared to the other sectors. Its contribution to real GDP growth is 0.72 percentage point. In 2013, the largest reduction was in construction (-10.6%; -124.3 mln.GEL) compared to the other sectors. This caused the reduction of real GDP by 0.71 percentage point.
The contribution of major sectors in real GDP growth (2013) 0.08 0.38 0.72 0.74 0.96 Taxes and subsidies Transport and communication Agriculture Trade Industry

In 2013, the industry increased (6.9%; 200.2 mln.GEL) compared to 2012. This sector has the largest contribu-

tion (0.96 percentage point) in real GDP growth (3.2%). In 2013, the agriculture (9.8%; 134.4 mln.GEL) and trade (5.1%; 109.5 mln.GEL) increased significantly.
Their contribution in real GDP growth are 0.72 and 0.74 percentage point.

1.00

Other sectors

In 2013, construction decreased significantly (-10.6%; -124.3 mln.GEL). This negatively reflected on the growth of real GDP (-0.71 percentage point). The reduction of
the volume of construction is due to the slowed down of governments projects in infrastructure.

-0.71

Construction

GDP by categories of use

In 2013, export has the largest contribution in formation of GDP.

In 2013, export increased (20.1%; 2003.7 mln.GEL) compared to 2012 . its share in GDP also increased (0.9 perIn 2013, the volume of final consumption and import stayed almost unchanged.
mln.GEL

25 2012 20 2013

centage point) and equals 5.1%.

15

10

In 2013, the gross capital formation decreased (-12.2%; -922.5 mln.GEL), as a result of the reduction of government investment.

0 (+)Final Consumption (+)Gross Capital Formation (+)Export (-)Import

The growth rate of real GDP and Foreign Direct Investments (FDI)
14% 12% 10% 40% 8%
growth rate of GDP (%)

80%

60%

6% 4% 2% 0%

0%

growth rate of FDI (%)

20%

-20%

-40% -2% -4% -6% 2007 2008 2009 2010 2011 2012 2013 -60%

In 2013, the volume of investments increased (1.1%; 15.8 mln.GEL), but the growth rate of GDP slowed down again (3.1 percentage point) compared to 2012. This
may be due to the reduction of internal investments.

The growth rate of foreign direct investments and real GDP have the similar trends. In 2012, FDI decreased (-20.1%; -378.5 mln.GEL).This negatively reflected on GDP growth rate, which also slowed down (-1.0 percentage point) in the same period and was 6.2%.

-80%

Growth rate of real GDP (left axis)

Growth rate of FDI (right axis)

Economic Outlook and Indicators

www.pmcg-i.com Gross Domestic Product - 2013
Issue # 23

16.04.2014

The production in agriculture (constant 2003 prices) and its share in real GDP

In 2013, farming animals (9.5%; 96.3 mln.GEL), production of fruits, nuts, beverage and spice crops (for example: grapes)(27.5%; 75.4 mln.GEL), cereals and other crops (13.0%; 36.9 mln.GEL) increased significantly.

1300
mln.GEL

10% 8% 6% 4% 2% 0% 2007 2008 2009 2010 2011 2012 2013

1200 1100 1000 900 800

In 2013, the export of agriculture products also increased significantly (51.1%; 435.4 mln.GEL).

Agriculture (left axis)

Share in GDP (right axis)

The production in construction (constant 2003 prices) and its growth rate
1200 1150 1100 7%
share in GDP (%)

10% 9% 8%

In 2013, the volume of construction decreased (-10.6%; -124.3 mln.GEL) compared to 2012. The share of construction in GDP (7.4%) also decreased compared to 2012 (8.6% ).
In 2013, the infrastructural projects financed by the government decreased significantly (construction of motorways, roads, airfields and sport facilities) (-39.4%; -154.2 mln.GEL).

1050

6% 5% 4% 3%

mln.GEL

1000 950 900

2% 850 800 2007 2008 2009 2010 2011 2012 2013 1% 0%

In 2013, the volume of foreign direct investments in construction increased (28.2%; 19.6 mln.GEL), which may affect positively on the volume of construction in 2014.

Construction (left axis)

Share in GDP (right axis)

Basic Economic Indicators

Nominal GDP in current prices (mln USD)
Per capita GDP (USD) GDP real growth, percent Consumer Price Index (annual average) Foreign Direct Investment (USD) Unemployment Rate External Public Debt (mln USD) Poverty Level (registered)

III12
4129 918 7.50% 199 -

IV12
4332.2 963.2 3,0% 233.7

2012
15 846.8 3 523.4 6.2% 99.1 911.6 15% 4739 9.7%

I 13*
3487.6 777.8 2.4% 226.2

II 13*
3958.4 882.8 1.5% 232.4

III 13*
4120.3 918.9 1.4% 238.7

IV 13*
4552.9 1015.4 7.1% 217.1

2013
16126.4 3596.6 3.2% 99.5 914.4 4202

Contact Information

PMCG Research

Tamar Jugheli

E-mail: research@pmcg.ge

E-mail: t.jugheli@pmcg.ge T: (+995) 2 921171 www.pmcg-i.com

Source:

National Statistics Office of Georgia, Ministry of Finance of Georgia, National Bank of Georgia

*projected

-2-

Share in GDP (%)

In 2013, the production in agriculture increased (9.8%; 134.4 mln.GEL) compared to 2012. In this period, the share of agriculture in real GDP is 10.6%, while the corresponding indicator in 2012 is 10.0%.

1600 1500 1400

16% 14% 12%