Real GDP up 4.3% y/y in April 2016
Georgia’s real GDP grew 4.3% y/y in April 2016 after growing 3.4% in March, according to GeoStat’s rapid estimates. In 4M16, output growth averaged 2.8% y/y (growth was 2.7% y/y in 4M15). Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
International arrivals up 14.9% y/y in May 2016
International arrivals increased 14.9% y/y to 0.52mn persons in May 2016, according to the Ministry of Internal Affairs. Increased arrivals from Turkey (+6.8% y/y, 25.8% of total), Azerbaijan (+18.6% y/y, 21.4% of total), Armenia (+3.9% y/y, 21.2% of total), and Russia (+18.7% y/y, 16.2% of total) contributed the most to the growth. In 5M16, total arrivals increased 15.5% y/y to 2.12mn persons.
Inflation rate at 2.1% y/y and -0.4% m/m in May 2016
Annual CPI inflation rate retreated to 2.1% y/y in May 2016 from 3.2% in previous month, according to GeoStat. Overall price changes were driven by price increases in alcoholic beverages and tobacco (+12.6% y/y, +0.77ppts), health (+5.7% y/y, +0.55ppts), and food and non-alcoholic beverages (+1.4% y/y, +0.40ppts) categories. Meanwhile, prices in the transport category decreased (-8.3% y/y, -1.01ppts), as prices were down for the purchase of vehicles.
On a monthly basis, there was 0.4% deflation in May 2016, after prices falling 0.6% in April. Price decreases in food and non-alcoholic beverages (-1.1% m/m, -0.35ppts), and alcoholic beverages and tobacco (-1.0% m/m, -0.06ppts) and price increase in transport (+0.6% m/m, +0.07ppts) categories were the major drivers of the monthly inflation dynamics.
Tax revenues up 8.3% y/y in May 2016
Consolidated budget tax revenues were up 8.3% y/y to GEL 725mn in May 2016. In 5M16, consolidated budget tax revenues stood at GEL 3.4bn (+8.3% y/y) and accounted for 39.3% of annual plan.
Capital markets development
National Bank of Georgia’s new regulation, effective 1 June 2016, enables commercial banks to pledge GEL-denominated corporate debt securities in the National Bank, provided that such securities have an acceptable credit rating.
