According to Geostat’s rapid growth estimates, Georgia’s real GDP declined by 0.5% in November 2014 (Chart 1). Despite this, growth in the first eleven months of 2014 was a robust 5%, which is certainly a much better result than most countries in the region could boast. The ISET fourth quarter GDP forecast predicts 3.9% growth in the last three months of 2014.
Consistent with the decline of growth in November, the change in VAT payers’ turnover slowed to 2.7% (Chart 2).
The slowdown of the economy was further reflected in the Consumer Confidence Index (CCI). In November, the CCI decreased to -18% and in December it reached its historical minimum of -23%. The deterioration of consumer confidence was mainly driven by the sharp depreciation of the lari, which once again stoked inflation fears among Georgian consumers. Download the full report
