Real GDP growth was 4.6% y/y in February 2019
Georgia’s economic growth accelerated to 4.6% y/y in February 2019, after growing 3.5% y/y in January 2019, according to Geostat’s rapid estimates. In February 2019, GDP growth was driven by manufacturing sector, followed trade and real estate operations. Meanwhile, growth was down in construction sector. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
NPLs at 2.9% in February 2019
In February 2019, the banking sector loan portfolio increased by 15.3% y/y after growing 16.7% y/y in previous month, excluding FX effect. In unadjusted terms, loan portfolio was up 20.8% y/y and up 0.2% m/m to GEL 26.4bn (US$ 9.8bn). Deposits were up 13.4% y/y excluding FX effect. In unadjusted terms, deposits were up 19.5% y/y and up 1.4% m/m to GEL 22.9bn (US$ 8.5bn). Deposit dollarization stood at 62.3% (-1.42ppts y/y and -0.16ppts m/m) and loan dollarization was 56.7% (+1.2ppts y/y and -0.3ppts m/m). NPLs stood at 2.9% in February 2019 (+0.1ppts y/y and -0.1ppts m/m).
Current account deficit at 7.7% of GDP in 2018
CA deficit narrowed to 7.7% of GDP (US$ 1.2bn) in 2018 from 8.8% in 2017, according to NBG. Goods trade deficit (25.3% of GDP) was down 0.2ppts y/y, as surge in exports (+22.4%) partly absorbed strong import growth (+15.2%). Increased positive balance in services (13.8% of GDP) and current transfers (8.4% of GDP) financed 88% of the goods trade deficit. Net FDI (5.5% of GDP) and other investments (3.9% of GDP) were major items for financing the current account deficit. As capital and financial account was higher than CA, reserves were up by US$ 279mn in 2018.
