International reserves up 0.7% m/m in November 2016 
Gross international reserves increased 0.7% m/m (+US$ 19.0mn), while reserves were up 12.1% y/y (+US$ 299.7mn) to US$ 2.78bn as of end-November 2016, according to NBG. The increase in reserves on a monthly basis was attributed to government and/or banking sector FX operations.

FDI up 4.9% y/y in 9M16
FDI in Georgia stood at US$ 463.3mn (-4.1% y/y) in 3Q16, according to GeoStat’s preliminary figures. Similar to previous quarters, the transport and communications sector was the largest FDI recipient at US$ 140.3mn (-29.7% y/y, 30.3% of total) in 3Q, followed by the construction sector at US$ 69.3mn (+18.6% y/y, 15.0% of total), the manufacturing at US$ 62.1mn (+265.5% y/y, 13.4% of total), and the financial sector at US$ 51.1mn (-25.5% y/y, 11.0% of total). Azerbaijan topped the list of investors with US$ 151.2mn, followed by Turkey at US$ 111.1mn, Luxembourg at US$ 52.1mn, and Czech Republic at US$ 28.5mn. Overall, FDI in 9M16 stood at US$ 1.3bn, up 4.9% y/y.

Job creation in business sector continued in 3Q16
In 3Q16, production of goods and services by the business sector increased 15.8% y/y to GEL 8.2bn. Manufacturing accounted for the largest share (21.2%) in production, followed by construction (20.5%) and trade (16.9%), while production was up in all sectors except for transport and communication (down 1.6% y/y). Like in previous quarters job creation was strong – number of employed persons increased 6.6% y/y to 606 thousand persons (+37.4 thousand persons y/y and +5.0 thousand persons q/q), with particularly upward trend in trade (+10.0% y/y, 25.7% of total), real estate (+8.3% y/y, 9.8% of total), hotels and restaurants (+7.7% y/y, 5.5% of total), and healthcare (+7.4% y/y, 10.4% of total).

EIB’s record lending of EUR 450mn to Georgia
On 9 December 2016, the European Investment Bank (EIB) signed three loan agreements in Georgia: EUR 250mn to finance new construction and upgrading of priority roads, EUR 100mn for the rehabilitation and upgrading of municipal infrastructure and a EUR 100mn intermediated loan to implement the projects of SMEs and midcap companies in the horticulture and wine sectors. The loans are covered by the European Union’s comprehensive guarantee.

GWP bond issuance
Water utilities company – GWP, completed its third successful issuance of 5-year GEL 30.0mn bonds on December 6, 2016 (details provided on fixed income page).