Georgian economy shrinks 3.9% in October y/y

Georgia’s economy contracted 3.9% in October, while growth was down a total of 5.1% in the first ten months of 2020, Geostat reports.

The recession is expected to increase even more as a result of additional lockdown measures announced by the government on November 26.

Before the austerity measures were introduced, the government had forecast a 5% contraction in the economy, but this figure is likely to change due to the new restrictions.

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Prime Minister Gakharia wagered the economic cost of the new restrictions would be about 0.7% – 0.8% of GDP.

The economic growth rates by month this year are as follows:

• January: 5.1%
  
• February: 2.2%
  
• March: -2.7%
  
• April: -13.5%;
  
• May: -16.6%
  
• June: -7.7%
  
• July: -5.5%
  
• August: -5.3%
  
• September: -0.7%
  
• October: -3.9%.