Trade deficit down 34.8% y/y in October 2020
In October 2020, trade deficit narrowed by 34.8% y/y to US$ 393.5mn as exports declined by 2.2% y/y to US$ 312.6mn and imports fell by 23.5% y/y to US$ 706.1mn.
In October 2020, copper (+47.1% y/y), cars (-56.5% y/y), wine (-21.4% y/y), nuts (+43.0% y/y) and ferro-alloys (+48.2% y/y) were the top 5 exported commodities. A 19.6% of exports was directed to the EU (-6.0% y/y), 43.7% to the CIS (-25.7% y/y) and 36.8% to other countries (+62.5% y/y).
Petroleum (-37.2% y/y), cars (-61.5% y/y), copper (-59.2% y/y), gases (+21.1% y/y) and pharmaceuticals (-21.5% y/y) represented the top 5 imported commodities in October 2020.
Overall, in 10M20, trade deficit was down 20.2% to US$ 3.7bn as exports reduced by 11.1% y/y to US$ 2.7bn and imports decreased by 16.6% y/y to US$ 6.4bn.
Money transfers up 18.6% y/y in October 2020
In October 2020, money transfers increased by 18.6% y/y to US$ 181.7mn, after growing 28.7% y/y in previous month, according to NBG. From major remitting countries, money transfers increased strongly from Italy (+30.9% y/y, 15.1% of total), USA (+39.5% y/y, 11.7% of total) and Greece (+23.6% y/y, 10.8% of total). Meanwhile, remittances declined from Russia (-7.0% y/y, 19.4% of total). Overall, in 10M20 money transfers were up 7.5% y/y to US$ 1.5bn.
Producer price index up 8.0% y/y in October 2020
Annual PPI for industrial goods was up 8.0% in October 2020 from 5.9% in previous month, according to Geostat. Price changes in manufacturing (+7.4% y/y) and mining (+20.4% y/y) contributed the most to the overall index change.
NBG sold US$ 30mn
On 18 November 2020, the NBG intervened on the FX market and sold US$ 30mn to limit GEL volatility. This was 23rd FX intervention YTD for a total sale of US$ 776.9mn through FX auctions.
