Money transfers up 14.8% y/y in November 2016
In November 2016, money transfers increased 14.8% y/y to US$ 97.8mn after growing 14.0% y/y in previous month, according to NBG. From major remitting countries, money transfers were up from Russia (+6.2% y/y, 36.2% of total), USA (+25.8% y/y, 10.6% of total), Italy (+15.8% y/y, 10.2% of total), Turkey (+63.6% y/y, 8.3% of total) and Israel (+88.7% y/y, 6.1% of total), while transfers were down from Greece (-2.4% y/y, 8.7% of total). Overall, money transfers were up 5.5% y/y to US$ 1.03bn in 11M16.
Exports up 16.8% y/y in November 2016
In November 2016, exports increased 16.8% y/y to US$ 218.7mn and imports increased 12.8% y/y to US$ 649.6mn, resulting trade deficit to widen 10.9% y/y to US$ 430.9mn, according to GeoStat’s preliminary figures. In 11M16, the trade deficit was up 1.2% y/y reaching US$ 4.59bn, excluding one-offs. Detailed foreign trade statistics will be available on December 19, 2016.
NBG keeps its policy rate unchanged at 6.5%
At its meeting on 14 December 2016, NBG’s monetary policy committee decided to keep the policy rate unchanged at 6.5%, as one-off increase of prices is expected due to the transmission of external shocks and the scheduled increase of excise taxes. NBG cited that these factors will have a short-term effect on inflation rate due to the decrease of inflation expectations. Georgia’s annual inflation stood at 0.2% in November, far below the regulator’s 2016 target of 5%, with weak aggregate demand along with reduced world commodity prices being one of the main reasons behind the low inflation rate. The next committee meeting is scheduled for January 25, 2017.
Producer price index up 2.8% m/m and up 1.7% y/y in November 2016
PPI for industrial goods increased 2.8% m/m in November 2016, according to GeoStat. A 3.1% price increase for manufacturing contributed the most to the overall index change. In this section prices were up for manufacture of basic and fabricated metals (+8.4% m/m) and up for manufacture of food products, beverages and tobacco (+2.2% m/m). Prices were also up for mining and quarrying (+8.4% m/m).
Annual PPI was up 1.7% in November 2016. Rising prices in manufacturing contributed the most to the overall index change (+0.9% y/y,) as prices were up for manufacture of food products, beverages and tobacco (+5.6% y/y) and basic and fabricated metals (+4.7% y/y). Meanwhile, supply of electricity, gas and water prices were up 4.9% y/y.
Property registration up 33.1% y/y in November 2016
Property registration (commercial and residential real estate) increased 33.1% y/y (+2.4% m/m), reaching 58,721 units in November 2016, according to the National Agency of Public Registry. Registration increased for primary (+73.9% y/y, 24.5% of total), as well as secondary (+23.7% y/y, 75.5% of total) properties.
Company registration up 16.6% y/y in November 2016
In November 2016, company registration increased 16.6% y/y (+9.6% m/m) to 4,197 units, according to National Agency of Public Registry. Out of newly registered companies, 95.3% were business legal entities, while 4.7% comprised non-entrepreneurial (non-commercial) legal entities.
Fitch Ratings has affirmed Georgian Water and Power’s (GWP) credit rating at BB-, outlook stable. This rating reflects the company’s natural monopoly position in Tbilisi’s water supply and sanitation sector. The ratings are supported by low sector risk, solid profitability, low leverage and good receivables collection rates.
