Real GDP grew 4.7% y/y in 2Q17
Georgia’s real GDP growth was revised upward to 4.7% y/y from 4.0% y/y rapid estimate figure in 2Q17 by GeoStat. As a result, 1H17 growth came in at 4.9% y/y compared to 3.0% y/y growth in 1H16. Construction was the fastest growing sector in 2Q17 expanding by 16.4% y/y, followed by hotels and restaurants (+12.9% y/y) and mining (+7.4% y/y). Declines were only posted in agriculture (-2.4% y/y) and electricity, gas and water production (-0.9% y/y) sectors.
Exports up 25.6% y/y in August 2017
In August 2017, exports increased 25.6% y/y to US$ 236.1mn, imports were up 1.2% y/y to US$ 699.7mn and the trade deficit narrowed 8.0% y/y to US$ 463.6mn, according to GeoStat. Overall in 8M17, the trade deficit was down 0.9% y/y at US$ 3.3bn as exports were up 28.5% to US$1.7bn, while imports increased 7.5% to US$ 4.9bn.
Increased exports of ferro-alloys (+134.1% y/y), cars (+22.6% y/y), wine (+58.1% y/y) and pharmaceuticals (+65.0% y/y) were the major commodities driving export growth in August 2017. In contrast copper exports were down 7.5% y/y.
Petroleum (+23.4% y/y), copper (+54.7% y/y), cars (-32.8% y/y), pharmaceuticals (+12.8% y/y) and phones (+27.3% y/y) represented the top 5 imported commodities in August 2017.
Producer price index up 0.8% m/m and up 11.5% y/y in August 2017
PPI for industrial goods was up 0.8% m/m in August 2017, according to GeoStat. A 0.6% price increase for manufacturing contributed the most to the overall index change as prices were up for manufacture of basic metals and fabricated metal products (+5.2% m/m) and chemicals and chemical products (+4.0% m/m), while prices were down for food, beverages and tobacco (-1.0% m/m).
Annual PPI was up 11.5% in August 2017. Rising prices in manufacturing (+11.4% y/y) contributed the most to the overall index change. Prices were also up for supply of electricity, gas and water (+10.1% y/y) and for mining and quarrying (+18.0% y/y).
