Real GDP growth was 5.5% y/y in February 2018
Georgia’s economy expanded 5.5% y/y in February 2018 after growing 4.4% y/y in previous month, according to GeoStat’s rapid estimates. In February 2018, the growth was recorded in manufacturing, real estate and trade sectors. Overall real GDP growth was 4.9% y/y in 2M18. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit shrank to 8.7% of GDP in 2017
CA deficit narrowed to 8.7% of GDP in 2017 from 12.8% in 2016, decreasing 28.8% y/y to US$ 1.3bn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, decreased 0.7% y/y to US$ 3.8bn, as exports increased 23.9% y/y, while imports were up 9.9% y/y. Positive balance in services was up 27.7% y/y to US$ 2.1bn (13.6% of GDP), driven by strong tourism inflows (up 27.0% y/y). Surplus in current transfers amounted to US$ 1.3bn (8.4% of GDP, up 13.3% y/y). Together, services and transfers financed 87% of the trade deficit. Net FDI, remains major source of CA deficit funding, and was up 33.3% y/y to US$ 1.6bn (10.5% of GDP).
NPLs at 2.8% in February 2018
In February 2018, the banking sector loan portfolio increased 20.0% y/y after growing 19.6% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 17.2% y/y and up 0.2% m/m to GEL 21.9bn (US$ 8.8bn). Deposits were up 19.0% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 15.9% y/y and flat m/m to GEL 19.2bn (US$ 7.7bn). Deposit dollarization declined to 63.7% (-6.7ppts y/y and -0.6ppts m/m). NPLs stood at 2.8% in February 2018 (-1.0ppts y/y and -0.1ppts m/m).
