Trade deficit up 2.0% y/y in July 2021
In July 2021, exports increased by 42.4% y/y and imports increased by 17.2% y/y, resulting trade deficit to grow by just 2.0% y/y. Overall, in 7M21, trade deficit was up by 13.3% y/y to US$ 2.9bn, as exports increased by 27.8% y/y to US$ 2.3bn and imports increased by 19.3% y/y to US$ 5.2bn (notably, in 7M21 exports were also up by 7.7% compared to 7M19 level, while imports remained flat in the same period).
In July 2021, copper (+27.3% y/y), cars (+23.1% y/y), ferro-alloys (+239.6% y/y), wine (+28.9% y/y) and fruits (+25.4% y/y) were the top 5 exported commodities. A 7.1% of exports were directed to the EU (-49.2% y/y), 50.1% to the CIS (+43.4% y/y) and 42.8% to other countries (+100.6% y/y).
Petroleum (+65.2% y/y), cars (-33.3% y/y), copper (+6.0% y/y), vaccines (+885.9% y/y) and pharmaceuticals (+28.7% y/y) represented the top 5 imported commodities in July 2021.
Money transfers up 10.4% y/y in July 2021
In July 2021, money transfers increased by 10.4% y/y to a record high of US$ 208.4mn, after growing 19.3% y/y in previous month, according to NBG. Notably, remittances were also up 34.9% compared to July 2019 level. From major remitting countries, money transfers increased strongly from Italy (+18.8% y/y, 16.0% of total), USA (+13.7% y/y, 12.2% of total), Israel (+14.4% y/y, 7.7% of total) and Germany (+43.4% y/y, 4.8% of total). Meanwhile, remittances were down from Russia (-0.7% y/y), Turkey (-20.7% y/y) and Ukraine (-24.9% y/y) in July. Overall, in 7M21 money transfers were up 34.8% y/y to US$ 1.3bn (+34.4% compared to 7M19).
Producer price index up 15.1% y/y in July 2021
Annual PPI for industrial goods came in at 15.1% in July 2021 down from 15.7% in previous month, according to Geostat. Price changes in manufacturing (+16.7% y/y) and electricity, gas, steam and air conditioning (+9.9% y/y) contributed the most to the overall index change in July 2021.
NBG sold US$ 30.0mn
On 20 August 2021, NBG intervened in the FX market and sold US$ 30.0mn to curb GEL volatility. This was 8th FX intervention in 2021. Previous FX auctions took place during Jan-Apr 2021 with the total sale of US$ 242.9mn.
