Inflation was 6.4% y/y and 0.7% m/m in January 2020
Annual CPI inflation retreated to 6.4% in January 2020 from 7.0% in previous month, according to Geostat. Core inflation (non-food, non-energy, non-tobacco) came in at 3.4%, down from 3.7% in previous month. Annual price changes were driven by price increases in food and non-alcoholic beverages (+11.3% y/y, +3.57ppts), alcoholic beverages and tobacco (+11.2% y/y, +0.76ppts), transport (+3.3% y/y, +0.39ppts) and hotels & restaurants (+8.2% y/y, +0.36ppts) categories. Meanwhile, prices were down in clothing & footwear (-3.3% y/y, -0.12ppts) and communication (-1.2% y/y,-0.04ppts). On a monthly basis, there was 0.7% inflation in January 2020. Price increase in food & non-alcoholic beverages (+2.3% m/m, +0.76ppts) category was the major driver of monthly inflation dynamics.
International arrivals up 19.8% y/y in January 2020
Total international arrivals (tourists and same-day arrivals) to Georgia increased by 19.8% y/y to 0.52mn persons in January 2020, according to GNTA. This growth was mostly driven by tourist arrivals (+18.9% y/y, 69.4% of total). Same-day arrivals also increased strongly (+21.9% y/y). Out of top countries, in January 2020, international visitors increased from Azerbaijan (+34.9%), Armenia (+17.5% y/y), Russia (+1.1% y/y), Turkey (+16.6% y/y), Ukraine (+22.4%), Israel (+57.3% y/y) and Iran (+12.4% y/y). Visitors from the EU were up 39.6% y/y to over 22,200 visitors, with Poland, Italy, Lithuania and France driving the growth. Meanwhile, we estimate tourism revenues at US$ 187.5mn (+14% y/y) in January 2020.
International reserves stood at US$ 3.5bn in January 2020
Gross international reserves were up 2.3% y/y to US$ 3.5bn in January 2020, according to NBG. On a monthly basis, reserves were down 0.7% (-US$ 23mn). The monthly decline in reserves was attributed to government and banking sector FX operations and/or asset revaluation.
