FDI up 3.7% y/y in 1Q17
FDI in Georgia stood at US$ 403.3mn (+3.7% y/y) in 1Q17, according to GeoStat’s preliminary figures. Similar to previous quarters, the transport and communications sector was the largest FDI recipient at US$ 141.1mn (-30.1% y/y, 35.0% of total) in 1Q17, followed by the real estate at US$ 80.3mn (+277.0% y/y, 19.9% of total), and the financial sector at US$ 79.6mn (+37.8% y/y, 19.7% of total). Azerbaijan topped the list of investors with US$ 97.3mn, followed by Turkey at US$ 81.5mn, UK at US$ 80.1mn, and United Arab Emirates at US$ 38.7mn.
Tourist arrivals up 19.6% y/y in May 2017
Total international arrivals to Georgia increased 5.7% y/y to 0.55mn visitors in May 2017, according to the Ministry of Internal Affairs. Arrival growth was mainly driven by surge in tourist arrivals increasing 19.6% y/y to 0.25mn persons (44.4% of total) in May after posting a 29.7% y/y growth in April 2017. Out of top countries by arrivals, in May 2017, visitors continued to increase from Armenia (+8.9% y/y), Russia (+16.8% y/y), Ukraine (+20.2% y/y) and Azerbaijan (+8.5% y/y), while arrivals were down from Turkey (-24.4% y/y). Arrivals from EU were up 13.0% y/y to over 28,000 visitors. In 5M17 international arrivals increased 9.7% y/y to 2.3mn visitors, while tourist arrivals increased 25.0% y/y to 0.98mn.
International reserves up 10.0% y/y in May 2017
Gross international reserves were up 10.0% y/y to US$ 2.8bn in May 2017, while reserves were up 2.9% on monthly bases, according to NBG. There were no interventions in the FX market by NBG in May; The increase in reserves was related to government FX operations and/or asset revaluation.
