Real GDP grew 4.7% in May 2019
Georgia’s economy expanded 4.7% y/y in May 2019, after growing 5.1% y/y in previous month, according to Geostat’s rapid estimates. Fastest growing sectors were real estate, trade and hotels and restaurants in May. Meanwhile, growth was down in construction and manufacturing. Overall, in 5M19 real GDP growth was 4.9% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit halved in 1Q19, coming in at 6.2% of GDP or US$ 226.9mn (-47.7% y/y), according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, decreased by 18.9% y/y to US$ 798.6mn, as exports increased by 12.5% y/y, while imports were down 3.3% y/y. Positive balance in services was down 4.9% y/y to US$ 367.9mn (10.1% of GDP), while tourism revenues posted 5.0% growth y/y in 1Q. Surplus in current transfers amounted to US$ 311.4mn (8.5% of GDP, down 8.6% y/y). Together, services and transfers financed 85% of the trade deficit. Net FDI (6.6% of GDP) was the major funding source of the CA deficit. The reserves were up by US$ 182mn in 1Q19 as capital and financial account was higher than CA.
NPLs at 3.1% in May 2019
In May 2019, the banking sector loan portfolio increased 14.8% y/y after growing 13.1% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 20.5% y/y and up 3.6% m/m to GEL 27.6bn (US$ 9.9bn). Deposits were up 10.9% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 19.6% y/y and up 3.5% m/m to GEL 23.9bn (US$ 8.5bn). Deposit dollarization stood at 62.0% (-0.28ppts y/y and +0.14ppts m/m) and loan dollarization reached 56.2% (+1.13ppts y/y and +0.52ppts m/m). NPLs stood at 3.1% in May 2019 (+0.54ppts y/y and -0.23ppts m/m).
