Real GDP growth was 4.8% y/y in 8M18
According to GeoStat’s rapid estimates, real GDP growth was 2.0% y/y in August 2018 and growth averaged 4.8% y/y in 8M18. In August 2018, the growth was posted in financial intermediation, trade, transport, real estate and hotels and restaurants sectors. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit reached 8.9% of GDP in 2Q18, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, increased 20.6% y/y to US$ 1.0bn, as exports increased 28.2% y/y, while imports were up 24.5% y/y. Positive balance in services was up 20.6% y/y to US$ 572.3mn (13.8% of GDP), driven by strong tourism inflows (up 28.6% y/y to US$ 810.0mn). Surplus in current transfers amounted to US$ 351.2mn (8.4% of GDP, up 10.7% y/y). Negative income balance increased by 3.4% y/y mostly due to reinvestments (up 34.3% y/y to US$ 178.8mn). Net FDI (6.7% of GDP) and other investments (4.3% of GDP) were major funding categories of the CA deficit. In 1H18, CA deficit stood at 10.3% of GDP.
NPLs at 2.6% in August 2018
In August 2018, the banking sector loan portfolio increased 19.0% y/y after growing 18.1% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 23.3% y/y and up 4.1% m/m to GEL 24.2bn (US$ 9.4bn). Deposits were up 16.9% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 21.2% y/y and up 5.1% m/m to GEL 21.5bn (US$ 8.4bn). Deposit dollarization stood at 62.7% (-2.8ppts y/y and +1.9ppts m/m). NPLs stood at 2.6% in August 2018 (-0.7ppts y/y and flat m/m).
NBG purchased US$ 10.0mn
On September 28, 2018, the NBG intervened on the FX market and purchased US$ 10.0mn. Overall, during April-September 2018, the NBG purchased US$ 112.5mn on its 10 FX auctions.
