Trade deficit up 5.0% y/y in April 2016
In April 2016, exports decreased 11.1% y/y to US$ 165.3mn, imports fell 0.5% y/y to US$ 549.3mn (excluding one-offs), and the trade deficit widened 5.0% y/y to US$ 384mn, according to GeoStat. Reduced ferroy-alloys exports (-29.2% y/y) and car re-exports (-28.6% y/y) were the major commodities weighing on export growth, while copper ores (+18.1% y/y), nuts (+21.2% y/y), wine (+21.5% y/y), gold (+40.1% y/y), and spirituous beverages (+35.9% y/y) posted increases in April.
Petroleum (-23.7% y/y), cars (-9.7% y/y), pharmaceuticals (+0.7% y/y, excluding one-offs), gases (-22.2% y/y), and copper ores (-39.5% y/y) represented the top 5 imported commodities in April 2015.
In 4M16, trade deficit was down 14.0% y/y to US$ 1.42bn as exports fell 11.7% y/y to US$ 608.1mn and imports fell 13.7% y/y to US$ 2.02bn (excluding one-offs).
Producer price index down 1.2% m/m and down 1.6% y/y in April 2016
PPI for industrial goods decreased 1.2% m/m in April 2016, according to GeoStat. A 1.3% decline in manufacturing prices contributed the most to the overall index change. Prices were down for manufacture of food products, beverages and tobacco (-1.3% m/m), and for manufacture of machinery and equipment (-21.8% m/m). Prices were also down for mining and quarrying (-2.6% m/m).
Annual PPI decreased 1.6% in April 2016 after growing 1.9% in March. Falling prices in manufacturing contributed most to the overall index change (-4.3% y/y, -3.58ppts) as prices were down for manufacture of food products, beverages and tobacco, and manufacture of basic and fabricated metals. Mining and quarrying prices were down 12.5% y/y while supply of electricity, gas and water prices were up 20.5% y/y.
NBG buys US$ 100mn
Last week, NBG intervened on the FX market 4 times and purchased US$ 100mn, aimed at curbing the appreciation of the national currency. Overall, NBG bought total of US$ 195mn at 11 interventions during March 17 – May 20. GEL strengthened 2.3% w/w and 10.4% YTD against the US$.
