Government’s GEL3.5bn anti-crisis plan and reopening timeline
On 24 April 2020, Prime Minister Giorgi Gakharia presented an anti-crisis plan to respond to COVID-19 pandemic associated economic and social challenges. The plan includes a social assistance package for individuals, as well as tax exemptions and various funding mechanisms for businesses. The Prime Minister said that Georgian economy expected to contract by 4 % in 2020. A total of GEL 3.5bn will be allocated for implementing the economic stimulus plan, of which GEL 1.35bn will be used to support citizens and GEL 2.11bn to support businesses – credit lines for commercial banks, VAT refunds, business guarantee schemes, etc.
Prime Minister also spoke about the gradual lifting of coronavirus-related restrictions and outlined a timeline. The reopening plan will be rolled out in 6 different phases – starting from 27 April through 6 July. Each stage will take place in every 2 weeks, while taking into consideration the epidemiological situation in the country.
Trade deficit down 6.8% y/y in March 2020
In March 2020, exports decreased by 22.1% y/y to US$ 251.9mn, imports fell by 13.4% y/y to US$ 655.0mn. As a result, trade deficit narrowed by 6.8% y/y to US$ 403.1mn, according to Geostat.
In March 2020, copper (+21.9% y/y), cars (-37.5% y/y), ferro-alloys (-64.4% y/y), wine (+1.9% y/y) and mineral waters (-10.6% y/y) were the top 5 exported commodities. A 27.2% of exports was directed to the EU (-11.8% y/y), 42.5% to the CIS (-34.6% y/y) and 30.3% to other countries (-6.8% y/y).
Cars (-25.0% y/y), petroleum (-9.1% y/y), copper (-26.1% y/y), gases (-27.2% y/y) and pharmaceuticals (-11.0% y/y) represented the top 5 imported commodities in March 2020.
Overall, in 1Q20, trade deficit was up 1.7% to US$ 1.2bn as exports decreased by 5.9% y/y to US$ 778.2mn and imports decreased by 1.4% y/y to US$ 2.0bn.
Producer price index up 8.7% y/y in March 2020
Annual PPI for industrial goods was up 8.7% in March 2020 according to Geostat. Rising prices in manufacturing (+8.7% y/y) contributed the most to the overall index change.
