Real GDP grew 5.3% y/y in May 2017
Georgia’s economy expanded 5.3% y/y in May 2017, after growing 2.1% y/y in previous month, according to GeoStat’s rapid estimates. Overall, in 5M17 GDP growth was 4.5% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit stood at 11.8% of GDP in 1Q17
Current account deficit narrowed to 11.8% of GDP in 1Q17 from 13.5% in 1Q16, decreasing 9.1% y/y in nominal terms to US$ 377.0mn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, increased 5.6% y/y to US$ 819.6mn, as exports increased 22.8% y/y, while imports were up 13.3% y/y. Positive balance in services, the largest positive item of the current account, was up 32.4% y/y to US$ 336.5mn. Among services, tourism had the largest positive balance and tourism revenues increased 23.3% y/y to US$ 434.6mn (13.6% of GDP). Net current transfers, the second largest positive item of the current account, were up 19.5% y/y to US$ 301.2mn. Net FDI, significant item for financing the current account deficit, amounted to US$ 352.1mn (11.0% of GDP, up 7.2% y/y). The largest investment inflows were directed to transport, real estate and financial sectors.
NPLs at 3.7% in May 2017
In May 2017, the banking sector loan portfolio increased 14.3% y/y after growing 13.3% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 25.7% y/y and 0.9% m/m to GEL 19.1bn (US$ 7.9bn). Deposits were up 12.4% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 21.4% y/y and up 1.1% m/m to GEL 16.4bn (US$ 6.7bn). Deposit dollarization reached 68.6% (+1.6ppts y/y and -0.1ppts m/m). NPLs stood at 3.7% in May 2017, flat y/y and m/m.
NBG Purchased USD$ 40.0mn
On 26 and 28 June 2017, the NBG intervened on the FX market and purchased US$ 20.0mn and US$ 20.0mn, respectively, on its foreign exchange auction. Overall, NBG purchased US$ 89.8mn YTD.
