Real GDP shrinks 7.7% y/y in June 2020
Georgia’s economic contraction halved to 7.7% y/y in June 2020 after falling by an average of 15.1% y/y in April-May, according to Geostat’s rapid estimates. Real growth was up in mining and water supply activities. Meanwhile, negative growth was recorded in all other sectors, however, significant improvements have been demonstrated in trade, construction and real estate activities. Overall, real GDP growth was down 5.8% y/y in 1H20. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
NPLs at 2.4% in June 2020
In June 2020, the banking sector loan portfolio increased by 13.9% y/y after growing 15.3% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 17.8% y/y and down 1.1% m/m to GEL 33.8bn (US$ 11.1bn). Deposits were up 12.2% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 16.8% y/y and 1.9% m/m to GEL 28.8bn (US$ 9.4bn). Loan dollarization stood at 56.5% (+0.56ppts y/y and -1.19ppts m/m) and deposit dollarization was 61.4% (-0.99ppts y/y and -2.67ppts m/m). NPLs stood at 2.4% in June 2020 (-0.48ppts y/y and flat m/m).
