International arrivals up 16.8% y/y in March 2016
Arrivals posted robust growth for the second consecutive month, increasing 16.8% y/y to 0.45mn persons in March 2016, according to the Ministry of Internal Affairs. Increased arrivals from Azerbaijan (+19.1% y/y, 29.2% of total), Russia (+15.8% y/y, 12.7% of total), Turkey (+6.9% y/y, 22.8% of total), Armenia (+4.3% y/y, 21.1% of total), and Iran (+1065.8% y/y, 3.0% of total) contributed the most to the growth. In 1Q16, total arrivals increased 15.0% y/y to 1.13mn persons.
Inflation rate at 4.1% y/y and -0.3% m/m in March 2016
Annual CPI inflation rate was recorded at 4.1% in March 2016 down from 5.6% in previous month, according to GeoStat. Overall price changes were driven by price increases in health (+10.2% y/y, +0.96ppts), alcoholic beverages and tobacco (+14.0% y/y, +0.84ppts), and food and non-alcoholic beverages (+2.3% y/y, +0.74ppts) categories. Meanwhile, prices in the transport category decreased (-3.6% y/y, -0.46ppts), as prices were down for the purchase of vehicles.
On a monthly basis, there was 0.3% deflation in March 2016. Price decreases in food and non-alcoholic beverages (-1.0% m/m, -0.30ppts) and transport (-0.8% m/m, -0.10ppts) and price increase in alcoholic beverages and tobacco (+1.5% m/m, +0.10ppts) categories were the major drivers of the monthly inflation dynamics
Tax revenues up 11.5% y/y in March 2016
Consolidated budget tax revenues were up 11.5% y/y to GEL 940mn in March 2016. In 1Q16, consolidated budget tax revenues stood at GEL 2.05bn and accounted for 102.3% of the planned amount.
Gross international reserves stood at US$ 2.5bn as of end-March 2016
Gross international reserves increased 1.3% m/m (+US$ 30.8mn) to US$ 2.5bn as of end-March 2016, according to NBG. On an annual basis, gross reserves increased 0.2% y/y (+US$ 3.8mn). The growth in reserves was partly attributed to NBG’s 2 FX interventions with a US$ 15mn purchase in March.
