Finance Minister: Georgia’s economy has moved to a new stage

After analyzing the results on the growth of the country’s economy in May, the budget for 2021 will be amended in accordance with the new forecasts, the minister said.

TBILISI, 11 Jun – Sputnik. Based on the April figures, it can be said that the Georgian economy has entered a new post-pandemic stage, said Georgian Finance Minister Lasha Khutsishvili in parliament.

According to the National Statistics Service, GDP growth in April was 44.8% compared to the same period last year, and the average real growth rate for the four months since the beginning of the year was 8.1%.

“Despite the fact that epidemiologically we are at the stage of a pandemic, based on the April indicators, I can say with full confidence that we have moved to the post-pandemic period, since economic activity in April exceeded the level of 2019,” Khutsishvili said.

According to him, after analyzing the results of economic growth in the country in May, the budget for 2021 will be amended in accordance with the new forecasts.

“The main goal of these changes will be to take important steps towards macroeconomic stability and, at the same time, support the economic recovery by financing various programs,” said the finance minister.

He noted that activity in the tourism sector rose by 152 percentage points in April.

“In 2020, real activity in the accommodation and catering sector decreased by 75%, but the April 2021 data shows that we are now experiencing a rapid recovery trend. Activity in this sector has grown by 2.5 times. that the sector has survived the crisis and is fully prepared for the restoration of tourism, “Khutsishvili said.

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At the same time, according to the Minister of Finance, the construction sector has recovered almost completely.

“In April 2021, real growth in the construction sector was 110%, and it almost completely recovered to the level of 2019,” Khutsishvili said.

The Georgian government revised its forecast for the country’s economic growth in 2021 from 4.3% to 6.5%. The Ministry of Finance is considering three scenarios for the development of events. According to the optimistic scenario, a faster growth of tourism is predicted – at the level of 40-45% from 2019. Dynamic economic growth is expected in other sectors of the economy.

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