Real GDP grew 5.2% y/y in January 2017
Georgia’s economy expanded 5.2% y/y in January 2017, after growing 0.3% y/y in previous month, according to GeoStat’s rapid estimates. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Tax revenues up 11.7% y/y in February 2017
Consolidated budget tax revenues were up 11.7% y/y to GEL 607.3mn in February 2017. The 2017 consolidated budget tax revenue plan stands at GEL 9.5bn (+8.6% compared to 2016 actual tax revenues).
Inflation rate at 5.5% y/y and 1.7% m/m in February 2017
The annual CPI inflation was 5.5% in February 2017 after 3.9% inflation in previous month, according to GeoStat. Core inflation was at 3.1% in February. Overall price changes were driven by price increases in transport (+17.4% y/y, +2.12ppts), food and non-alcoholic beverages (+5.5% y/y, +1.66ppts) and alcoholic beverages and tobacco (+16.3% y/y, +1.03ppts) categories.
On a monthly basis, prices rose 1.7% in February 2017. Price increases in food and non-alcoholic beverages (+1.7% m/m, +0.51ppts), and transport (+3.5% m/m, +0.48ppts) categories were the major drivers of monthly inflation dynamics.
Tourist arrivals up 16.4% y/y in February 2017
Total international arrivals to Georgia increased 2.1% y/y to 0.37mn visitors in February 2017, according to the Ministry of Internal Affairs. Arrival growth was mainly driven by surge in tourist arrivals increasing 16.4% y/y to 0.14mn persons (38.0% of total) in February 2017 after posting a 32.4% y/y growth in January 2017. Out of top countries by arrivals, in February 2017 visitors continued to increase from Armenia (+7.7% y/y), Russia (+31.4% y/y) and Ukraine (+10.6% y/y), while arrivals were down from Turkey (-21.0% y/y) and Azerbaijan (-6.6%). Arrivals from EU were up 18.5% y/y.
NPLs at 3.8% y/y in January 2017
In January 2017, the banking sector loan portfolio increased 11.7% y/y after growing 10.7% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 18.2% y/y and 1.2% m/m to GEL 19.1bn (US$ 7.1bn). Deposits were up 10.5% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 18.0% y/y and up 1.0% m/m to GEL 17.2bn (US$ 6.3bn). Deposit dollarization reached 71.9% (+0.5ppts y/y and m/m). NPLs stood at 3.8% in January 2017, up 0.7ppts y/y and up 0.3ppts m/m.
