International arrivals up 13.0% y/y in 1H16
International arrivals to Georgia increased 4.1% y/y to 0.52mn persons in June 2016, according to the Ministry of Internal Affairs. Increased arrivals from Azerbaijan (+1.9% y/y, 22.3% of total), and Russia (+4.4% y/y, 18.1% of total) contributed the most to the growth. In 1H16, total arrivals increased 13.0% y/y to 2.64mn persons, while visitors staying more than 24 hours increased 18.5% y/y.
Inflation rate at 1.1% y/y and -0.9% m/m in June 2016
Annual CPI inflation rate retreated to 1.1% y/y in June 2016 from 2.1% in previous month, according to GeoStat. Core inflation was 2.9% in June. Overall price changes were driven by price increases in alcoholic beverages and tobacco (+11.6% y/y, +0.71ppts), housing, water, electricity and gas (+6.1% y/y, +0.51ppts), and health (+4.2% y/y, +0.41ppts) categories. Meanwhile, prices in transport category decreased (-9.5% y/y, -1.16ppts), as prices were down for purchase of vehicles.
On a monthly basis, there was 0.9% deflation in June 2016. Price decreases in food and non-alcoholic beverages (-2.6% m/m, -0.79ppts) and price increase in transport (+1.7% m/m, +0.19ppts) categories were the major drivers of the monthly inflation dynamics.
International reserves up 11.2% m/m in June 2016
Gross international reserves increased 11.2% m/m (+US$ 287.9mn) and 15.0% y/y (+US$ 373.5mn) to US$ 2.86bn as of end-June 2016, according to NBG. Increase in reserves was attributed to NBG’s FX interventions and operations with commercial banks.
Property registration up 16.0% y/y in June 2016
Property registration (commercial and residential real estate) increased 16.0% y/y (+22.1% m/m), reaching 57,007 units in June 2016, according to the National Agency of Public Registry. Registration increased for primary (+12.1% y/y, 19.7% of total), as well as secondary (+17.0% y/y, 80.3% of total) properties.
Company registration flat in June 2016
In June 2016, company registration increased 0.5% y/y (+5.8% m/m) to 4,039 units, according to the National Agency of Public Registry. Out of newly registered companies, 96.1% were business legal entities, while 3.9% comprised non-entrepreneurial (non-commercial) legal entities.
World Bank ranked Georgia as upper middle income country
Each year on July 1, World Bank revises the analytical classification of the world’s economies based on estimates of gross national income (GNI) per capita for the previous year. As of 1 July 2016, the World Bank has raised Georgia’s position in a global income ranking, as Georgia’s GNI per capita reached $4,160. Georgia was promoted on the list into the upper middle-income economies, with a GNI per capita between $4,036 and $12,475.
