Trade deficit down 9.7% y/y in 10M15, excluding one-offs
According to GeoStat’s preliminary figures, the trade deficit in October 2015 decreased 16.3% y/y to US$ 427mn, as exports fell 30.9% y/y to US$ 188mn, while imports were down 21.4% y/y to US$ 615mn. As a result, in 10M15, exports decreased 24.4% y/y to US$ 1.8bn, imports fell 14.8% y/y to US$ 6.0bn (excluding donated c-hepatitis medicine imports of US$ 318mn in 10M15), and the trade deficit decreased 9.7% y/y to US$ 4.1bn. Therefore, the adjustment in imports was instrumental in the elimination of external imbalances, easing pressure on GEL. Detailed statistics will be available on November 24, 2015.
Property registration up 0.3% y/y and company registration down 15.0% y/y in Oct-2015
Property registration (commercial and residential real estate) increased 0.3% y/y (-5.2% m/m), reaching 46,516 units in October 2015, according to National Agency of Public Registry. Notably, a sharp increase in primary properties (+26.6% y/y, 20.5% of total) fully compensated a decrease in secondary property registration (-4.8% y/y, 79.5% of total).
Company registration decreased 15.0% y/y (-4.6% m/m) to 3,681 units in October 2015. Out of newly registered companies, 96.8% were business legal entities, while 3.2% comprised non-entrepreneurial (non-commercial) legal entities.
Amendments to the 2015 state budget
On November 10, 2015, Government submitted amendments to the 2015 state budget to the Parliament. The government-proposed changes include increasing the tax revenue target by GEL 120mn, on the back of 2015E growth adjustment from 2.0% to 2.8%, adding GEL 96mn to the Healthcare Ministry and reducing funding for the Ministry of Regional Development and Infrastructure by GEL 77mn. To maintain the 2015 deficit target at 3.0% of GDP, the government plans to use deposits and cut public borrowing by GEL 293mn (o.w. external borrowing by GEL 108mn and domestic borrowing by GEL 185mn). As a result, the government is expected to accumulate GEL 140mn in deposits, compared to the previous target of GEL 320mn in 2015.
