Real GDP grew 3.1% y/y in June 2015 and 2.6% y/y in 1H15
Georgia’s real GDP grew 2.1% y/y in 2Q15 as output expanded 3.1% y/y in June, 2.1% y/y in May and 0.9% y/y in April, according to GeoStat’s rapid estimate. As a result, real growth averaged 2.6% y/y in 1H15 from a higher base in 1H14 when real GDP growth was 6.1% y/y. In June 2015, VAT turnover increased 10.3% y/y (second largest after February). Based on available data, tourism, financial intermediation, operations in real estate, and budget capital spending (+22.1% y/y) supported the expansion in 2Q15, while lower external earnings were dragging the growth. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Banking sector remains profitable, NPLs are low
In June 2015, the loan portfolio grew 14.7% y/y excluding the exchange rate effect (+32.6% y/y and -0.8% m/m in unadjusted terms) to GEL 14.7bn (US$ 6.6bn). Deposits grew 6.5% y/y excluding the exchange rate effect (+23.7% y/y and -1.2% m/m in unadjusted terms), reaching GEL 12.6bn (US$ 5.6bn). NPLs remain under control at 3.3%, unchanged m/m and -0.2ppts y/y. The banking sector remains profitable with ROE reaching 15.9% in 2Q15 (+3.7ppts q/q and +0.8ppts y/y).
