Georgia’s gross domestic product (GDP) contracted by 8.3 percent on a year-on-year basis in January-February 2021, compared to 3.7 percent growth in the same period last year, the National Statistics office said on Wednesday.

In February alone, economic growth declined by 5.1 percent after a contraction of 11.5 percent in January this year and 2.2 percent growth in February 2020.

According to the Statistics office, contraction was in construction, accommodation service
activities, arts, entertainment and recreation, transportation and storage, real estate activities,
manufacturing.

A growth was registered in financial and insurance activities, trade as well as water supply and
waste management activities.

Georgia’s economy shrank 6.2 percent year-on-year in 2020, compared to 5 percent growth in 2019 as  measures to curb the coronavirus negatively affected the economic situation.

Over the last decade, Georgia has become the post-Soviet region’s premier international tourist destination, and a huge part of the country’s economy has come to rely on this fact. Over nine million international travelers visited the country in 2019—up from two million in 2010—bringing in – officially – $3 billion in revenue. However, much of the tourist-led economy is believed to be in cash, off-the-books transactions.

Closed borders affected the tourism sector dramatically and the country implemented a series of stringent nationwide lockdown measures, including a 9 p.m. curfew and a ban on large gatherings. Many restrictions were only lifted earlier this year.