Exports up 36.4% y/y in March 2017
In March 2017, exports increased 36.4% y/y to US$ 220.8mn, imports were up 12.0% y/y to US$ 618.4mn and the trade deficit widened 1.9% y/y to US$ 397.6mn according to GeoStat’s preliminary figures. Detailed foreign trade statistics will be available on April 19, 2017.
Money transfers up 23.5% y/y in March 2017
In March 2017, money transfers increased 23.5% y/y to US$ 112.0mn after growing 17.9% y/y in previous month, according to NBG. Money transfers were up from all major remitting countries: Russia (+27.5% y/y, 34.2% of total), USA (+18.0% y/y, 10.5% of total), Greece (+16.2% y/y, 10.3% of total), Italy (+13.7% y/y, 9.9% of total), and Turkey (+25.0% y/y, 8.3% of total). In 3M17 money transfers were up 22.3% y/y to US$ 290.1mn.
NBG Purchased USD$ 10mn
On April 12, 2017, the NBG intervened on the FX market and purchased USD$ 10mn to curb appreciation of the national currency. This was first intervention since the start of the year. The GEL strengthened 10.8% against the US$ YTD.
IMF Executive Board Approves US$ 285.3mn New Program for Georgia
On April 12, 2017, the Executive Board of the International Monetary Fund (IMF) approved a three-year extended arrangement under the Extended Fund Facility (EFF) for Georgia for an amount of SDR 210.4mn (about US$ 285.3mn or 100% of quota) to support the authorities’ economic reform program. The Executive Board’s approval allows for an immediate disbursement of SDR 30mn (or about US$ 40.7mn). The remaining amount will be phased over the duration of the program, subject to six semi-annual reviews.
The program will help Georgia reduce economic vulnerabilities, pursue well-coordinated policies, and promote economic growth. The program includes ambitious structural reforms to generate higher and more inclusive growth, focusing on: improving education; investing in infrastructure; making the public administration more efficient; and improving further the business environment to boost the private sector as a growth engine.
