Verdict: FactCheck concludes that Dimitri Kumsishvili’s statement is TRUE.
Resume: The turnover of VAT paying enterprises amounted to GEL 5,855.9 million in March 2018 which is 12.1% more as compared to the same month of the previous year. In March 2017, the growth rate was even higher by 4.6 percentage points, reaching 16.7%. In terms of the average trade turnover of the first four months (12.8%), this amount is less as compared to the average figure for the same period (15.6%) of 2017.
In regard to the number of newly registered enterprises, 4,786 enterprises were registered in March 2018 which is 0.5% less as compared to the same month of the previous year. Of note is that the Minister of Economy and Sustainable Development does not provide a figure for the changes in the amount of registered enterprises.
Analysis: The First Deputy Prime Minister and Minister of Economy and Sustainable Development, Dimitri Kumsishvili, whilst speaking about the country’s economic indicators also touched upon the issue of the turnover of enterprises registered in Georgia. In accordance with the Minister’s statement, the turnover of enterprises increased by 12.1% in March 2018 as compared to March 2017 whilst the number of newly registered enterprises equals 4,786.
The National Statistics Office of Georgia compiles statistics on the country’s business sector turnover. With the aim of making a preliminary assessment of monthly economic growth rates, it uses the turnover figures of VAT paying enterprises. The respective data are given in Graph 1. The turnover figure for enterprises is the accrued income received from selling goods and services without VAT and excise tax.
Graph 1: Trend of Changes in Turnover of Enterprises
In March 2018, the turnover volume of VAT paying enterprises reached GEL 855.9 million which is 12.1% more as compared to the same data of the previous year. Of note is that the growth figure was 4.6 percentage points more in March 2017 – 16.7%. In April 2018, the figure amounts to GEL 5,543.7 million as a result of a 15% growth as compared to April of the previous year.
The average four-month figure for the turnover of enterprises is GEL 4,769 whilst the average turnover growth rate is 15.6% as compared to the same months of the previous year. The average figures for enterprise turnover and growth for the first four months of 2018 are GEL 5,403.7 million and 12.8%, respectively.
The National Statistics Office of Georgia makes calculations of the amount of newly registered enterprises each month. In March 2018, the number of newly registered enterprises reached 4,786 which is 0.5% less as compared to the same month of the previous year. In April 4,307 enterprises were registered which is 9.3% more as compared to the same period of the previous year.
Graph 2. Tendency of Change in Number of Newly Registered Enterprises