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Issue 30: GDP and FDI - II quarter 2014

03-Oct-2014
   GDP and FDI  - II quarter 2014
ISSUE  #30 / 03.10.2014

 

In the first quarter of 2014, real GDP increased (7.1%, 223mln GEL). Manufacturing (16.7%, 56.4 mln.GEL), construction (14%, 35 mln. GEL) and trade (11.1%, 57.1mln GEL) expanded the most. The reduction was only in mining (-13.6%; -3.3 mln.GEL). In the first quarter of 2014, FDI (15%; 33.7 mln.USD) also increased. 

 

Real GDP and FDI growth, 2011-14 The structure of real GDP , II quarter 2014
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Source: Geostat

In the II quarter of 2014 real GDP increased (5.2%) compared to the corresponding period of 2013. Construction (18.7%) and transports and communications (15.3%) expanded the most.In the II quarter of 2014, foreign direct investments (FDI) declined (27.6%; 57.4 mln. USD) compared to the corresponding period of 2013 and reached 150.5 mln. USD. FDI declined in the following sectors: financial services (8.5 times; 141.8 mln. USD), construction (2.4 times; 28.2 mln. USD) and energy (1.6 times; 26.3 mln. USD). It should be noted, that the reduction of FDI was caused by the declining FDI in the financial sector (share of more than 10%), that was mainly due to the sold shares by the international organizations.

FDI increased in the following sectors: transports and communications (3.7 times; 73.6 mln. USD), real estate (3.2 times; 28.1 mln. USD) and agriculture (2.2 times; 2.7mln. USD).

In the II quarter of 2014, there are no significant changes compared to the corresponding period of 2013.

In this period, 57% of real GDP was created in the following fields: transports and communications (18%), industry (15%), trade (13%) and agriculture (10%).

FDI  by  countries, II quarter 2014    FDI  by  economic  sectors, II quarter 2014 
   

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Source: Geostat

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 In the II quarter of 2014 the top three largest investors in Georgia are: Netherlands (35%), Azerbaijan (29%) and Luxembourg (18%). Structure of investments by countries has changed compared to the II quarter of 2013. In that period the top three largest investors were: Luxembourg (56%), China (36%) and Netherlands (15%).

In the II quarter of 2014 the structure of FDI by economic sectors is the following: transports and communications (36%; 101.2 mln. USD), manufacturing (21%; 58.5 mln. USD) and energy (16%; 44.9 mln. USD). The structure has changed compared to the II quarter of 2013. In that period the structure was the following: energy (29%, 71.3 mln. USD), manufacturing (25%, 28.4 mln. USD) and transports and communications (20%, 27.5 mln. USD) sectors.

 

Real  growth  of Construction and FDI in this sector, 2011-14 Real  growth  of Manufacturing and FDI in this sector, 2011-14
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In the II quarter of 2014, construction has the largest share (1.4% point) in the real GDP growth.

In the II quarter of 2014, the output (12.8%; 94.4 mln. GEL), turnover (31.3%; 178.7 mln. GEL) and the number of employees (3.6%; 1.6 thousand people) increased in construction. Consequently, there is high growth rate in the construction sector (18.7%; 52.8 mln. GEL).

In the II quarter of 2014, manufacturing has the second largest share (1 percentage point) in the real GDP growth.

In the II quarter of 2014 turnover (13.0%; 180.8 mln. GEL) and output (10.2%; 136.9 mln. GEL) of manufacturing increased. As a result, the real growth rate of manufacturing industry is high - 6.8% (36.5 mln. GEL). However, the number of employees in the manufacturing sector decreased (-5.5%; 4.6 thousand people).

In the II quarter of 2014 FDI in manufacturing increased (1.9 times; 30.1 mln. USD). Share of FDI in this sector is 46% (69.4 mln.USD).

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