Real GDP shrinks 5.5% y/y in July 2020
Georgia’s economic contraction was 5.5% y/y in July 2020 after falling 7.7% y/y in June 2020 and 12.6% y/y in 2Q20, according to Geostat’s rapid estimates. In July, real growth was positive in mining and manufacturing activities only. Overall, real GDP growth was down 5.8% y/y in 7M20. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Inflation was 4.8% y/y and flat m/m in August 2020
Annual CPI inflation retreated to 4.8% in August 2020 from 5.7% in previous month, according to Geostat. Core inflation (non-food, non-energy) was 5.7% in August 2020, while core inflation excluding tobacco was 5.2%. Annual price changes were driven by price increases in food and non-alcoholic beverages (+9.2% y/y, +2.88ppts) and alcoholic beverages and tobacco (+8.9% y/y, +0.60ppts) categories and price drop in transport (-8.9% y/y, -1.12ppts) category. On a monthly basis, inflation was flat in August 2020.
GLC has issued the US$ 10mn bond
Georgian Leasing Company (GLC), has successfully placed US$ 10mn bond with a 2-year maturity, paying 7.50% coupon rate offering on 31 August 2020. The proceeds of the bond will be used to refinance existing loan arrangements of GLC. The bond is expected to be listed on the Georgia Stock Exchange.
