Trade deficit down 27.1% y/y in August 2020 
In August 2020, trade deficit narrowed by 27.1% y/y to US$ 350.8mn as drop in exports slowed to 7.5% y/y (US$ 292.4mn) and imports fell by 19.3% y/y (US$ 643.3mn). 
In August 2020, copper (+7.5% y/y), cars (-41.8% y/y), ferro-alloys (+34.5% y/y), wine (-25.7% y/y) and spirits (+14.0% y/y) were the top 5 exported commodities. A 20.6% of exports was directed to the EU (-11.1% y/y), 47.7% to the CIS (-20.3% y/y) and 31.7% to other countries (+26.3% y/y). 
Cars (-37.4% y/y), petroleum (-33.1% y/y), pharmaceuticals (-5.1% y/y), copper (-52.9% y/y) and wheat (+91.9% y/y) represented the top 5 imported commodities in August 2020. 
Overall, in 8M20, trade deficit was down 19.3% to US$ 2.9bn as exports reduced by 14.7% y/y to US$ 2.1bn and imports decreased by 17.5% y/y to US$ 5.0bn. 

NPLs at 2.2% in August 2020 
In August 2020, the banking sector loan portfolio increased by 12.1% y/y after growing 13.4% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 16.7% y/y and unchanged m/m amounting GEL 34.5bn (US$ 11.2bn). Deposits were up 18.4% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 22.2% y/y and 1.3% m/m to GEL 30.9bn (US$ 10.1bn). Loan dollarization stood at 56.1% (+0.57ppts y/y and -0.55ppts m/m) and deposit dollarization was 59.5% (-4.20ppts y/y and -1.06ppts m/m). NPLs stood at 2.2% in August 2020 (-0.59ppts y/y and -0.09ppts m/m). 

Producer price index up 4.9% y/y in August 2020 
Annual PPI for industrial goods retreated to 4.9% in August 2020 from 7.0% in previous month, according to Geostat. Price changes in manufacturing (+4.7% y/y) and mining (+19.6% y/y) contributed the most to the overall index change. 

International arrivals down 96.0% y/y in August 2020 
Total international arrivals (tourists and same-day arrivals) to Georgia was down 96.0% y/y to c.44k persons in August 2020 according to GNTA, as borders remained closed for international travel due to COVID-19 pandemic. Overall, in 8M20, total international arrivals stood at 1.3mn (-74.6% y/y), of which tourist arrivals reached 0.92mn (-73.4% y/y) persons. Meanwhile, based on NBG, tourism revenues stood at US$ 483.4mn (-78.7% y/y) in 8M20. 

NBG sold US$ 40mn 
On 23 September 2020, the NBG intervened on the FX market and sold US$ 40mn to limit GEL volatility. This was 14th FX intervention YTD for a total sale of US$ 449.7mn through FX auctions.