Geostat has released its preliminary estimates of GDP growth for the third quarter. The estimated Q3 growth is 2.5%, only 0.1 percentage points below the ISET-PI forecasted value. The forecast for GDP growth in the fourth quarter now stands at 3.6%.

The final growth forecast for the third quarter of 2015 has not changed significantly since last month (declining by only 0.02%) and remains at 2.6%. Similarly, the second growth forecast for the fourth quarter of 2015 is still 3.8%.

The report "Financial Soundness Indicators for Sector Stability in Georgia" provides an overview of the health of the Georgian financial sector and the key challenges it faces. Over the medium term, to increase domestic savings, reduce borrowing cost, and improve the credit risk, the report recommends facilitating property registration, improving the credit information-sharing mechanism, ensuring the security of bank deposits, and legislating improvements in reporting standards for firms.

The growth forecast for the third quarter of 2015 has not changed since last month and remains at 2.6%. The first forecast for the fourth quarter growth of 2015 has been targeted at 3.8%.

Investments in real estate compensates for risk premiums (compared to money deposits) and more than covers its costs (Mortgage interest rate). Average rental price for residential property continues to fall and reaches its historical minimum since March 2013.