Real GDP growth was 5.1% y/y in January 2020
Georgia’s economy expanded 5.1% y/y in January 2020, according to Geostat’s rapid estimates. In January, growth base was diversified and only mining was in red. Notably, fastest growth was recorded in transportation and storage, construction, real estate, accommodation and food service activities, trade, information and communication, electricity, gas and manufacturing sectors. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
NPLs at 2.2% in January 2020
In January 2020, the banking sector loan portfolio increased 16.3% y/y after growing 16.2% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 20.9% y/y and flat m/m to GEL 31.9bn (US$ 11.0bn). Deposits were up 11.3% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 17.2% y/y and up 0.9% m/m to GEL 26.5bn (US$ 9.1bn). Loan dollarization stood at 55.1% (-1.90ppts y/y and flat m/m) and deposit dollarization was 63.3% (+0.86ppts y/y and -0.79ppts m/m). NPLs stood at 2.2% in January 2020 (-0.84ppts y/y and +0.24ppts m/m).
Unemployment rate reduced to 11.6% in 2019
In 2019, the unemployment rate fell by 1.1ppts y/y to 11.6%, according to Geostat. This decline is explained by reduction of labor force. Notably, 1.7mn persons were employed in 2019, of which hired persons accounted for 50.3% total employment and self-employed stood at 49.7%.
