Georgia's real GDP grew 5.8% year-to-year in the first quarter of 2011 with nominal GDP standing at GEL 5.1 billion, according to preliminary figures released by the state statistics office, Geostat, on June 20.
Georgia's real GDP grew 6% y/y in the fourth quarter of last year, making 2010 GDP growth 6.4%.
Industry sector and trade made more than third of the country’s GDP in the first quarter of 2011 with 18.8% and 17.1%, respectively, followed by transport and communication – 12.1%; government spending – 10.6%; agriculture – 9.4% and healthcare – 7.1%.
Financial sector enjoyed with the largest growth in the first quarter of 2011 with 24%, followed by energy, water production and distribution – 12.4%; real estate – 9.5%; transport – 9.1%; processing industry – 8.6%; hotels and restaurants – 8.6%; communications – 7.6%.
Agriculture sector, which saw 1.7% contraction in 2010, grew 1.7% in the first quarter of 2011.
Construction sector suffered 5.5% contraction in the first quarter of 2011, according to the Geostat.
Giorgi Iremashvili, an analyst at BG Capital, investment arm of Bank of Georgia, said preliminary April figures were showing a notable slowdown in growth.
“We now expect second quarter economic growth at 3.0-3.5% y/y, which poses downside risks to our full year projection of 5.5%. Soft domestic demand looks to be the culprit at the moment,” he said.