GDP Forcast

Details: Created: 02 March 2016

ISET-PI has updated its forecast for Georgia’s real GDP growth rate for the first two quarters of 2016. Here are the highlights of this month’s releases:

• According to Geostat estimates, Georgia’s annual real GDP growth in 2015 was 2.8%. ISET-PI’s annual GDP growth forecast of 2.9% annual growth (since September 2015) thus turned out to be quite accurate, just 0.1 percentage point above the official estimate.
• According to Geostat’s newly-released rapid estimates, GDP growth in January 2016 was 0.8% year on year.

• ISET-PI’s forecast for the first quarter of 2016 now stands at 2.9% – down from 3.5% in January. The second quarter growth forecast now stands at 5.0%. Download the full report

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Details: Created: 26 January 2016

ISET-PI has updated its forecast for Georgia’s real GDP growth rates using the November 2015 releases of various economic indicators.

We have recently updated the GDP series (the dependent variable in our model), using the revised GDP growth rates available from Geostat.
Based on the November data, the forecast for GDP growth in the fourth quarter of 2015 now stands at 3.4%. This is 0.1 percentage points lower than in the previous vintage of the forecast.
Annual growth for 2015 is still expected to be 2.9%.
According to the second vintage of the forecast for 2016, the growth rate in the first quarter is predicted to be 3.5%. Once again, this is 0.1 percentage points below our previous prediction. Download the full report

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Details: Created: 17 December 2015

ISET-PI has updated its forecast of Georgia’s real GDP growth rates using the October2015 releases of various economic indicators.

We have recently updated the GDP series (the dependent variable in our model), using the revised GDP growth rates available from Geostat.
Based on the new data, the forecast for GDP growth in the fourth quarter now stands at 3.5%.
The annual growth rate for 2015 is still expected to be 2.9%.
According to an early forecast for 2016, the growth rate in the first quarter of next year is predicted to be3.6%. Download the full report

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GDP Forecast Methodology

The Georgian Index of Leading Economic Indicators provides current-quarter and one-quarter-ahead GDP forecasts for those who need to make business and policy decisions and cannot wait until the official statistics are announced several months later. According to methodology, our forecast is similar to those conducted by leading research institutes around the world. In particular, ISET-PI adapted the methodology that was originally developed by the New Economic School to forecast GDP for the Russian Federation. We would like to acknowledge the help of Prof. Konstantin Styrin (NES) who agreed to share his MATLAB code with ISET-PI, and the assistance of Dr. Andrei Sarychev in modifying and adapting the code for Georgia‘s needs.