Geostat Reports Zero GDP Growth in May

Georgia’s real GDP growth in May on the annual basis was zero, after 4.5% year-on-year increase in April, according to preliminary data released by the state statistics office, Geostat, on June 28.

It said that economy grew 2.4% y/y in the first quarter of 2013 – the figure has been revised upwards for third time from initial 1.7% and then 1.9%.

In a televised statement on June 29 President Saakashvili said that May economic growth figures were indicating on “disastrous” state of Georgia’s economy for which he blamed government’s policies, “suspension of large-scale infrastructure projects”, Georgia’s “significantly deteriorated international reputation”, as well as “deterioration” on the legislative level, including amendments to the labor code.

“If the economy continues collapsing with this pace, it will become an issue of national security and we will become a piece which our ill-wishers will be able to swallow easily,” he said and called on the government to “wake up” and tackle the problem, adding that he was ready to engage in dialogue with the government over these issues.

Saakashvili also said: “Now it is time for [PM Ivanishvili] to make large-scale investment of his own money in Georgia’s economy.”

Adapted from Civil Georgia