Trade deficit decreased by 12.5% y/y in August 2019
In August 2019, exports increased by 12.3% y/y to US$ 309.4mn, imports were down 3.7% y/y to US$ 744.5mn and the trade deficit narrowed 12.5% y/y to US$ 435.1mn, according to Geostat. In August 2019, copper (+60.1% y/y), cars (+61.7% y/y), wine (+15.4% y/y), pharmaceuticals (+4.7% y/y) and ferro-alloys (-53.4% y/y) were the top 5 exported commodities. A 21.9% of exports were directed to the EU (+77.0% y/y), 54.4% to the CIS (+10.3% y/y) and 23.8% to other countries (-13.1% y/y).
In August 2019, petroleum (-20.7% y/y), cars (-5.1% y/y), copper (+8.4% y/y), pharmaceuticals (-10.4% y/y) and phones (-8.1% y/y) represented the top 5 imported commodities.
Overall, in 8M19, the trade deficit was down 13.8% y/y to US$ 3.3bn as exports were up 12.4% y/y to US$ 2.4bn and imports fell 4.4% y/y to US$ 5.7bn.
Money transfers up 7.8% y/y in August 2019
In August 2019, money transfers increased 7.8% y/y to US$ 146.4mn, after growing 7.0% y/y in the previous month, according to NBG. From major remitting countries, money transfers were up from Italy (+25.6% y/y, 14.0% of total), USA (+1.5% y/y, 10.3% of total), Greece (+16.9% y/y, 10.1% of total), Israel (+8.1% y/y, 9.6% of total) and Turkey (+9.2% y/y, 5.4% of total). Importantly, remittances from Turkey increased for the first time since Aug-18. Meanwhile remittances continued to decline from Russia (-14.5% y/y, 24.2% of total). Overall, in 8M19 money transfers were up 7.8% y/y to US$ 1.1bn.
Tourist arrivals up 2.3% y/y in August 2019
Total international arrivals (tourists and same-day arrivals) to Georgia increased by 4.4% y/y to 1.09mn in August 2019, according to GNTA. This growth was mostly driven by same-day arrivals (+9.7% y/y to 0.33mn trips), while tourist arrivals also increased by 2.3% y/y (69.4% of total). Out of top countries, in August 2019, international visitors increased from Azerbaijan (+12.8%), Armenia (+4.5% y/y), Turkey (+6.8% y/y), Ukraine (+16.3%), Israel (+13.5% y/y) and Saudi Arabia (+31.5%). Meanwhile, visitors declined from Russia (-8.5% y/y) and Iran (-52.0% y/y). Visitors from the EU were up 23.4% y/y to over 73,300 visitors, with Poland, Germany and Netherlands driving the growth. In 8M19, total international visitors stood at 5.2mn (+6.4% y/y), of which tourist arrivals reached 3.5mn (+6.7% y/y). Meanwhile, tourism revenues stood at US$ 2.2bn (flat y/y) in 8M19 according to NBG.
Producer price index up 11.1% y/y in August 2019
Annual PPI for industrial goods was up 11.1% in August 2019, according to Geostat. Price changes in manufacturing (+11.8% y/y) and products from mining and quarrying (+21.8% y/y) contributed the most to the overall index change.
