Tourist arrivals up 28.6% y/y in March 2017
Total international arrivals to Georgia increased 13.1% y/y to 0.51mn visitors in March 2017, according to the Ministry of Internal Affairs. Arrival growth was mainly driven by surge in tourist arrivals increasing 28.6% y/y to 0.22mn persons (43.0% of total) in March after posting a 16.4% y/y growth in February 2017. Out of top countries by arrivals, in March 2017, visitors continued to increase from Armenia (+11.2% y/y), Russia (+16.3% y/y), Ukraine (+16.5% y/y) and Azerbaijan (+11.1% y/y), while arrivals were down from Turkey (-17.3% y/y). Arrivals from EU were up 9.5% y/y to over 15,000 visitors. In 1Q17 international arrivals increased 11.4% y/y to 1.3mn visitors, while tourist arrivals increased 25.7% y/y to 0.51mn.
Tax revenues up 12.3% y/y in March 2017
Consolidated budget tax revenues were up 12.3% y/y to GEL 1.1bn in March 2017, according to Treasury Service. In 1Q17, tax revenues stood at GEL 2.4bn accounting for 107.4% of the planned amount. The 2017 consolidated budget tax revenues are budgeted at GEL 9.5bn (+8.6% compared to 2016 actual tax revenues).
Inflation rate at 5.4% y/y and -0.5% m/m in March 2017
The annual CPI inflation was 5.4% in March 2017 after 5.5% inflation in previous month, according to GeoStat. Core inflation was 2.9% in March, down from 3.1% in previous month. Overall price changes were driven by price increases in transport (+18.7% y/y, +2.26ppts), food and non-alcoholic beverages (+5.4% y/y, +1.62ppts) and alcoholic beverages and tobacco (+16.0% y/y, +1.03ppts) categories.
On a monthly basis, prices declined 0.5% in March 2017. Price decrease in food and non-alcoholic beverages (-1.1% m/m, -0.33ppts), and housing, water, electricity, gas and other fuels (-1.5% m/m, -0.13ppts) categories were the major drivers of monthly deflation dynamics.
International reserves up 15.3% y/y in March 2017
Gross international reserves were up 15.3% y/y to US$ 2.8bn in March 2017, while reserves were up 1.9% on a monthly bases, according to NBG. There were no interventions in the FX market by NBG in March; The increase in reserves was related to government FX operations and/or asset revaluation.
