Trade deficit down 10.4% y/y in May 2015
In May 2015, exports decreased 19.6% y/y to US$ 195mn, imports fell 13.1% y/y to US$ 707mn, and trade deficit decreased 10.4% y/y to US$ 513mn, according to foreign trade data released by GeoStat. As a result, in 5M15, exports fell 24.8% y/y to US$ 884mn, imports decreased 9.0% y/y to US$ 3.0bn, and trade deficit decreased 0.4% y/y to US$ 2.1bn. The 19.6% y/y decline in exports in May was predominantly due to a decline in re-exports (-45.3% y/y, mostly used cars). Georgia originated exports experienced the lowest decline (-1.4% y/y) since weaker external demand started to affect export performance in September 2014. Nuts (+240% y/y) and gold (+89% y/y) were the major Georgia originated exports expanding significantly in May.
In 5M15, 27% of exports were directed to the EU (-4.4% y/y), 38% to the CIS (-46.2% y/y), and 35% to other countries (+3.4% y/y), out of which Turkey (9.8% of total) and China (5.3%) were the largest export destinations. A 63.7% y/y drop in car exports (10.0% of total) had the largest negative impact. Nuts (+154.1% y/y), pharmaceuticals (+70.3% y/y), and gold (+82.6% y/y) were the major Georgian exports expanding significantly in 5M15.
In 5M15, pharmaceuticals (+127.8% y/y), petroleum (-28.3% y/y), cars (-17.3% y/y), gases (+18.2% y/y), and copper ores (+30.3% y/y) represented the top 5 imported commodities. 31% of imports were originated from the EU, 26% from the CIS, and 43% from other countries, with Turkey (17.3% of total), and China (8.5%) being the largest trading partners.
NPLs remain low
In May 2015, loan portfolio monthly growth was flat, while excluding exchange rate effect, the loans grew 16.6% y/y (+37.2% y/y in unadjusted terms) to GEL 14.9bn (US$ 6.4bn). Deposits grew 8.9% y/y excluding exchange rate effect (+28.8% y/y and -1.4% m/m in unadjusted terms), reaching GEL 12.8bn (US$ 5.5bn). NPLs remain under control at 3.4% (-0.2ppts m/m, and -0.3ppts y/y).
