Real GDP up 2.0% y/y in November 2016
Georgia’s economy expanded 2.0% y/y in October 2016, after growing 1.3% y/y in previous month, according to GeoStat’s rapid estimates. As a result, output growth averaged 2.4% y/y in 11M16. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit stood at 8.4% of GDP in 3Q16
Current account deficit widened to 8.4% of GDP in 3Q16 from 8.0% of GDP in 3Q15, increasing 11.5% y/y in nominal terms to US$ 316.7mn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, decreased 7.0% y/y (excluding c-hepatitis medicines) to US$ 930.8mn, as exports fell 1.8% y/y, while imports were down 4.7% y/y; in unadjusted terms trade deficit was up 56.6% y/y. Positive balance in services was up 7.5% y/y to US$ 652.8mn. Among services, tourism had the largest positive balance, increasing 10.1% y/y to US$ 817.0mn (21.7% of GDP). Net current transfers, the largest positive item of the current account, were up 164.7% y/y to US$ 1.2bn, on the back of 4.1x increase in the government sector transfers due to the international aid received for hepatitis-C elimination program (911.6mn). Net FDI, significant item for financing the current account deficit, amounted to US$ 421.0mn (11.2% of GDP, up 2.2% y/y). The largest investment inflows were directed to transport, construction and manufacturing sectors.
