Real GDP grew 0.9% y/y in April 2015
Real GDP expanded by 0.9% y/y in April 2015, according to GeoStat’s rapid estimates, and output growth averaged 2.6% y/y in 4M15. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Unemployment rate declined 2.2ppts to 12.4% in 2014
The annual unemployment rate stood at 12.4% in 2014 (-2.2ppts y/y), according to GeoStat. Out of employed persons, the share of hired labor increased by 1.1ppts and accounted for 39.8% of total, while share of self-employed persons declined to 60.2% of total (-1.1ppts). According to Ministry of Economy and Sustainable Development of Georgia, employment growth was significant in construction, transport and communication and education sectors.
10-Y Ministry of Finance Treasury Notes issued at a historical high yield of 13.770%
Last week, GEL 10mn (US$ 4.39mn) 10-year Ministry of Finance Treasury Notes were sold at the Auction held at NBG. Total demand from the two commercial banks participating in the auction amounted to GEL 12.50mn. Minimum yield was 12.300%, maximum yield was 14.750% and the weighted average yield was fixed at a historical high of 13.770%. The coupon rate was 10.500%, with semiannual coupon payment. Prior to this issuance, the highest average yield for the 10-Y T-Notes, 12.305%, was recorded in March 2012.
Loans/deposits continue growing, NPLs are low
Loans and deposits continue growing in April 2015, according to NBG. Excluding exchange rate effect, the loan portfolio increased 17.0% y/y (+37.8% y/y in unadjusted terms) to GEL 14.8bn (US$ 6.4bn). Deposits grew by 10.7% y/y excluding exchange rate effect (+31.0% y/y in unadjusted terms), reaching GEL 13.0bn (US$ 5.6bn). NPLs stood at 3.5% (+0.2ppts m/m, and +0.2ppts y/y).
