Real GDP up 2.6% y/y in February 2016
Georgia’s real GDP expanded 2.6% y/y in February 2016 up from 0.8% y/y growth in previous month, according to GeoStat’s rapid estimates. In 2M16, output growth averaged 1.7% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit stood at 11.8% of GDP in 2015
Current account deficit widened to 11.8% of GDP in 2015 from 10.6% of GDP in 2014, while deficit was down 6.4% y/y in nominal terms to US$ 1.6bn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, remained almost flat y/y as exports (-23.4% y/y) and imports (-11.1% y/y) were both down. Positive balance in services and current transfers compensated 71% of trade deficit. Among services, tourism had the largest positive balance, increasing 8.3% y/y to US$ 1.9bn (13.9% of GDP). Net current transfers were the second largest positive item of the current account, up 12.2% y/y to US$ 1.6bn (growth was driven by the government sector transfers that increased 4x annually, mainly due to the international aid received for C-hepatitis elimination program. Current transfers of the other sectors decreased 23.3% y/y to US$ 1.1bn). Net FDI, significant item for financing the current account deficit, amounted to US$ 1.2bn (8.7% of GDP). The largest investment inflows were directed to transport and communications sector.
