Exports up by 44.9% y/y in May 2021
In May 2021, exports increased by 44.9% y/y to US$ 339.4mn after a 70.0% y/y growth in previous month (notably, exports was broadly flat vs May 2019). Imports also increased by 40.3% y/y to US$ 742.3mn, after growing 58.0% y/y in previous month (notably, imports was down 6.5% vs May 2019). As a result, trade deficit widened by 36.5% y/y to US$ 402.9mn in May. Overall in 5M21, trade deficit was up by 9.6% y/y to US$ 1.9bn, as exports increased by 24.4% y/y to US$ 1.5bn and imports increased by 15.7% y/y to US$ 3.5bn.
Money transfers up by 42.4% y/y in May 2021
In May 2021, money transfers increased by 42.4% y/y to US$ 187.7mn, after growing 145.4% y/y in previous month, according to NBG. Notably, remittances were also up by 28.8% compared to May 2019 level. From major remitting countries, money transfers increased strongly from Italy (+15.7% y/y, 17.0% of total), Russia (+60.6% y/y, 16.9% of total), USA (+58.8% y/y, 12.9% of total), Greece (+9.6% y/y, 11.0% of total) and Israel (+29.8% y/y, 7.9% of total). Overall, in 5M21 money transfers were up 46.9% y/y to US$ 881.1mn.
Real GDP growth at -4.5% in 1Q21
Georgia’s 1Q21 real GDP growth came in at -4.5%, revised downwards from -4.2% rapid estimate figure by Geostat. This drop reflected significant reduction in accommodation & food services (-54.0% y/y), art & recreation (-25.4% y/y), construction (-19.4% y/y), real estate (-6.4% y/y) and transport (-9.0% y/y). Meanwhile, real growth was posted in financial and insurance activities (+24.0% y/y), mining (+50.3% y/y), health (+13.3% y/y) and trade (+3.9% y/y) sectors. Notably, growth accelerated markedly from April 2021 and real GDP growth was 8.1% y/y in 4M21 based on Geostat’s rapid estimate.
Georgian Railway successfully priced a US$ 500mn 7-year Eurobond
On 17 June 2021, Georgian Railway successfully priced a US$ 500mn, 7-year Eurobond, with coupon rate at 4.0%. Strong investor demand led to 8.4x oversubscription as orders reached US$ 4.2bn. 2 International Financial Institutions participated in the deal as anchor investors. After the book building, the yield on the Eurobond was set at 4.00%, representing c. 100bps spread over extrapolated GEORGIA 26 sovereign Eurobond yield (comparable 7-year). International investment banks J. P. Morgan Securities, Citi and Renaissance Capital participated in the Eurobond issuance process, along with local investment banks Galt & Taggart and TBC Capital.
