Real GDP grew 4.4% y/y in February 2017
Georgia’s economy expanded 4.4% y/y in February 2017, after growing 5.2% y/y in previous month, according to GeoStat’s rapid estimates. As a result, output growth averaged 4.8% y/y in 2M17. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit stood at 13.3% of GDP in 2016
Current account deficit widened to 13.3% of GDP in 2016 from 12.0% in 2015, increasing 13.6% y/y in nominal terms to US$ 1.9bn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, decreased 3.5% y/y to US$ 3.8bn, as exports fell 6.5% y/y, while imports were down 4.9% y/y. Positive balance in services, the largest positive item of the current account, was up 10.7% y/y to US$ 1.6bn. Among services, tourism had the largest positive balance and tourism revenues increased 11.9% y/y to US$ 2.2bn (15.1% of GDP). Net current transfers, the second largest positive item of the current account, were down 0.8% y/y to US$ 1.1bn. Net FDI, significant item for financing the current account deficit, amounted to US$ 1.4bn (10.0% of GDP, up 12.9% y/y). The largest investment inflows were directed to transport, energy and construction sectors.
