Georgia’s GDP decreases

GDP per capita for the first quarter of 2009 was GEL 876.9 according to official statistics. This is 8% less than in the same period of 2008.

The Ministry of Economic Development notes that there have been setbacks in some industries in Georgia in the first quarter of 2009, 23% of construction business, 17% in trade and 12% in hotels and restaurants.

Economic analyst Soso Archuadze suggests that while evaluating the current GDP decrease we should keep in mind the GDP growth indicators of the past several years. There was GDP growth in Georgia but compared with Azerbaijan it was very small because for the last five years GDP in Azerbaijan increased by 160%. This difference can be attributed to the fact that Azerbaijan is an oil producing country. But the population is not satisfied with this explanation. It wants a better standard of living.