The GDP for the 9 months of 2005 The Ministry of Economic Development of Georgia The Statistics Department

FROM THE REDACTION

According to the preliminary data, the real growth of the GDP for the 9 months of 2005 has made up 7.7% against the corresponding period of the last year. More exact indicators will be published at the end of January 2006.

The sphere of financial mediation is again developing at high rates. The observed growth rates in this sphere are the highest in comparison with the other sectors of the economy. The real growth rate of financial mediation in 9 months of 2005 has made up 53.6% against the corresponding period of the last year. The banking sector’s high development rates were considerably stipulated by increasing of the volume of credit lines from abroad. Though it must be noted that a specific share of financial mediation in the GDP is still small (1.4%), and it has no considerable effect on general growth rates.
The construction sector is again developing in a sustainable way. In the 3rd quarter of 2005, 11.7% more of surplus value was created in the construction sector against the corresponding period of the last year, and in 9 months – 3.0% more. This growth would be more considerable but for the decreasing by 25.4% in thee first quarter. Profitable long term crediting from the banking sector contributes to development of the construction sector. In the 9 months of 2005, in comparison with the 2004, 27.0% more credits were granted from the banking sector to the construction sector. The increased financing by the state of construction and reconstruction of roads is added to this. AAccording to the Treasury Department of the Finance Ministry, during the 9 months of the current year, against the corresponding period of the last year, the financing in this direction has increased by 3.2 times.
Agriculture has the largest specific share in the country’s economy (17.8%). Over the 9 months agriculture has grown by 5.2%. At the same time it must be noted that during the 9 months of the last year a 6,1% decrease was observed.
A 17.0% decrease is observed in mineral resource industry this year. This sector’s specific share in the GDP makes up 0,9%. However, it must be noted that this sector has a big potential for development, and the results of privatization started by the government in this sphere will manifest in the nearest future.
Over the 9 months of 2005 the total real surplus value created in the processing industry made up 12.7, while in the sphere of electrical energy, natural gas, water produce and supply it has increased by 7.9%.
The trade sector is also developing in a sustainable way. The development of this sector is related to the volume of the turnover of goods of local and foreign produce. During the 9 months of 2005 trade had increased by 8.3%
Hotel and restaurant sector is developing at comparatively slow rates (1.2% during the 9 months). Probably it was stipulated by the fact that this sector, compared to other sectors of the GDP, (e.g. financial mediation, construction, transport, etc.) is more developed. Implementation of considerable investments in this sphere is a necessary condition of its growth.