Real GDP up 1.5% y/y in September 2016
Georgia’s economy expanded 1.5% y/y in September 2016, after growing 2.9% y/y in the previous month, according to GeoStat’s rapid estimates. As a result, output growth averaged 2.6% y/y in 9M16. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Tourist arrivals up 20.9% y/y in October 2016
Total international arrivals to Georgia increased 4.5% y/y to 0.5mn visitors in October 2016, according to the Ministry of Internal Affairs. Arrival growth was solely driven by surge in tourist arrivals increasing 20.9% y/y to 0.2mn persons (40.9% of total) in October 2016 after growing 34.2% y/y in previous month. Out of top countries by arrivals, in October 2016 visitors continued to increase from Azerbaijan (+10.1% y/y), Russia (+13.0% y/y), Ukraine (+15.8% y/y), and Iran (+344.3%), while arrivals were down from Armenia (-2.1% y/y) and Turkey (-16.6% y/y). Arrivals from EU were up 20.8% y/y. In 10M16, the number of total international arrivals was up 8.1% y/y to 5.4mn persons, while the number of tourists increased 19.7% y/y to 2.4mn persons.
Inflation rate at -0.2% y/y and 0.5% m/m in October 2016
The annual inflation fell below zero at -0.2% in October 2016 after 0.1% inflation in previous month, according to GeoStat. Core inflation also retreated to 0.9% in October from 1.5% in previous month. Overall price changes were driven by price decreases in transport (-6.7% y/y, -0.79ppts) and furnishings, household equipment and maintenance (-3.9% y/y, -0.25ppts) categories. Meanwhile, prices were up for alcoholic beverages and tobacco (+10.9% y/y +0.67ppts).
On a monthly basis, inflation rate was 0.5% in October 2016. Price increases in food and non-alcoholic beverages (+0.7% m/m, +0.22ppts), health (+2.0% m/m, +0.20ppts), and clothing and footwear (+3.0% m/m, +0.08ppts) were the major drivers of monthly inflation dynamics.
Tax revenues up 8.5% y/y in October 2016
Consolidated budget tax revenues were up 8.5% y/y to GEL 669.1mn in October 2016. In 10M16, consolidated budget tax revenues stood at GEL 7.1bn (+9.5% y/y) and accounted for 82.3% of annual tax revenue plan.
