Tourist arrivals up 43.0% y/y in June 2017
Total international arrivals to Georgia increased 28.5% y/y to 0.67mn visitors in June 2017, according to the Ministry of Internal Affairs. Arrival growth was mainly driven by surge in tourist arrivals increasing 43.0% y/y to 0.33mn persons (49.3% of total) in June after posting a 19.6% y/y growth in May 2017. Out of top countries by arrivals, in June 2017, visitors continued to increase from Armenia (+28.8% y/y), Russia (+45.0% y/y), Iran (+222.1% y/y) and Azerbaijan (+16.6% y/y), while arrivals were down from Turkey (-6.4% y/y). Arrivals from EU were up 27.0% y/y to over 34,500 visitors. In 1H17 international arrivals increased 13.4% y/y to 3.0mn visitors, while tourist arrivals increased 29.1% y/y to 1.3mn.
Inflation was up 7.1% y/y and down 0.4% m/m in June 2017
The annual CPI inflation was 7.1% in June 2017 after 6.6% inflation in previous month, according to GeoStat. Core inflation was 4.5% in June, up from 3.7% in previous month. Overall price changes were driven by price increases in food and non-alcoholic beverages (+9.5% y/y, +2.87ppts), transport (+15.3% y/y, +1.92ppts), and alcoholic beverages and tobacco (+18.2% y/y, +1.18ppts) categories. On a monthly basis, there was 0.4% deflation in June 2017. Price decrease in food and non-alcoholic beverages (-1.5% m/m, -0.45ppts) and price increase in alcoholic beverages and tobacco (+2.5% m/m, +0.17ppts) categories were the major drivers of monthly Inflation dynamics.
International reserves up 3.5% y/y in June 2017
Gross international reserves were up 3.5% y/y to US$ 3.0bn in June 2017, while reserves were up 4.6% on monthly bases, according to NBG. The increase in reserves was partly related to FX interventions by NBG, with a total purchase of US$ 70mn in June 2017.
