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Georgian Economy: Increased By 2.7% in Seven Months

According to preliminary data, the estimated real Gross Domestic Product (GDP) growth rate amounted to 2.1 percent y-o-y in July 2016.

The estimated real GDP growth in Q2 2016 equaled 3.1 percent y-o-y. The estimated real GDP growth for the first seven months of 2016 reached percent 2.7 y-o-y. Geostat produces monthly rapid estimations of real GDP growth using administrative data on VAT taxpayers’ turnover, fiscal and monetary statistics.

The compilation of rapid estimates is an internationally adopted practice to obtain preliminary monthly growth of real GDP. For those sectors, where preliminary monthly data do not exist (e.g. agriculture, nonobserved economy etc.), the estimations are based on the data for previous periods. Therefore, the actual quarterly real GDP growth may significantly differ from monthly rapid estimates.

Furthermore, the data on VAT taxpayers’ turnover for the previous months might be updated on a monthly basis, implying corresponding adjustments of real GDP growth estimates.