Real GDP up 2.1% y/y in July 2016
Georgia’s real GDP growth was 2.1% y/y in July 2016, according to GeoStat’s rapid estimates. As a result, output growth averaged 2.7% y/y in 7M16. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
International arrivals up 8.3% y/y in 8M16
International arrivals to Georgia decreased 0.6% y/y to 0.85mn persons in August 2016, according to the Ministry of Internal Affairs. However, the number of tourists (overnight visitors) continues to increase at double-digit rates (+17.3% y/y). A drop in arrivals from Turkey (-41.7% y/y, 11.6% of total) had the largest negative effect on total arrivals in August. Meanwhile, visitor numbers continue to increase from Russia (+11.9% y/y), Ukraine (+47.7% y/y), and Iran (+599.3% y/y). In 8M16, the number of total arrivals is up 8.3% y/y to 4.25mn persons, while the number of overnight visitors has increased 17.7% y/y.
Inflation rate at 0.9% y/y and 0.4% m/m in August 2016
The annual CPI inflation rate retreated to 0.9% y/y in August 2016 from 1.5% in the previous month, while core inflation was at 2.6% y/y, according to GeoStat. Overall price changes were driven by price increases in alcoholic beverages and tobacco (+11.9% y/y, +0.73ppts), health (+3.3% y/y, +0.32ppts), and restaurants and hotels (+4.6% y/y, +0.18ppts). Meanwhile, prices in the transport category decreased (-7.7% y/y, -0.92ppts), as prices were down for purchase of vehicles and for operation of personal transport equipment.
On a monthly basis, inflation rate was at 0.4% in August 2016. Price increases in food and non-alcoholic beverages (+1.4% m/m, +0.42ppts) and recreation and culture (+0.9% m/m, +0.06ppts) and a price decrease in the health category (-0.7% m/m, -0.07ppts) were the major drivers of monthly inflation dynamics.
