Producer price index up 2.3% m/m and 8.7% y/y in April 2015
PPI for industrial products increased 2.3% m/m in April 2015, according to GeoStat. Monthly index was mainly impacted by a 2.7% increase in manufacturing prices (mostly for chemical products, while food, beverages and tobacco manufacturing prices increased slightly), contributing 2.21ppts to the overall index change.
Annual PPI increased 8.7% in April 2015, with manufacturing prices increasing 11.1% y/y (mostly for manufacture of foods, beverages and tobacco, basic metals, fabricated metal products, and paper and publishing), contributing 9.04ppts to the overall index change. Prices decreased 4.1% y/y (-0.54ppts) in the electricity, gas and water supply category.
Trade deficit decreased 18.2% y/y in April 2015
According to GeoStat’s preliminary figures, the trade deficit decreased 18.2% y/y to US$ 365mn as exports fell 21.4% y/y to US$ 186mn, while imports were down 19.3% y/y to US$ 551mn, in April 2015. While exports continued to decrease, the adjustment in imports was much larger in April than in the previous months, which can be attributed to currency depreciation pressures and savings stemming from lower world commodity prices. Detailed statistics will be published on May 21.
Money transfers down 24.4% y/y in April 2015
Money transfers decreased 24.4% y/y to US$ 91.1mn in April 2015, according to NBG. The 40.1% y/y drop in transfers from Russia, accounting for 40.6% of total transfers, was the major contributor. As in previous months, remittances continue robust growth from USA +26.6% y/y (8.9% of total), Turkey +13.4% y/y (6.3%), and Israel +29.9% y/y (2.7%).
Georgia hosted the 2015 EBRD annual meeting and business forum
Tbilisi hosted the EBRD annual meeting and business forum on May 14-15, 2015. The event attracted around 2000 international delegates, including government officials and business representatives, and helped raise awareness of the investment climate and opportunities in Georgia. Upcoming sports and business events for the remainder of the year – UEFA Super Cup, European Youth Olympic Festival, BSTDB annual meeting and business forum, and Silk Road forum – will further raise the country’s profile and contribute positively to the service sector.
