March 22, 2021

Georgia’s gross domestic product (GDP) contracted by 6.2 percent on a year-on-year basis in 2020, compared to 5 percent growth in 2019, the National Statistics office said on Monday. Measures to curb the coronavirus negatively affected the economic situation, the office said.

GDP at current prices amounted to 49.4 billion lari, (GEL ₾) – $17.9 billion.

Over the last decade, Georgia has become the post-Soviet region’s premier international tourist destination, and a huge part of the country’s economy has come to rely on this fact. Over nine million international travelers visited the country in 2019—up from two million in 2010—bringing in – officially – $3 billion in revenue. However, much of the tourist-led economy is believed to be in cash, off-the-books transactions.

Closed borders affected the tourism sector dramatically and the country implemented a series of stringent nationwide lockdown measures, including a 9 p.m. curfew and a ban on large gatherings. Many restrictions were only lifted a few weeks ago.

According to the Statistics office, revenues in accommodations and food services fell by 37.9 percent. Administrative and support services and transportation shrank by 22.3 percent. Arts, entertainment and recreation fell 18.9 percent. Professional, scientific and technical activities plummeted 18.4 percent.

There was modest growth in some sectors. Health and social work grew 7.9 percent. Agriculture, forestry and fishing climbed 3.6 percent. And education grew by 3.1 percent.