Real GDP growth revised up to 5.3% in 1Q18
1Q18 economic growth in Georgia was revised up to 5.3% from 5.2% rapid estimate figure according to GeoStat. In 1Q18, the fastest growing sectors in real terms were: real estate operations (+13.4% y/y), social and personal service activities (+13.4% y/y), mining (+11.4% y/y), hotels and restaurants (+10.9% y/y) and electricity, gas and water supply (+10.0% y/y). Real growth was down 2.2% y/y in agriculture. The largest sectors were trade (16.9% of total), mining (10.1% of total) and construction (8.9% of total) in 1Q18.
Exports up 50.2% y/y in May 2018
In May 2018, exports growth surged 50.2% y/y to record high US$ 323.3mn, imports were up 25.2% y/y to US$ 803.4mn and the trade deficit widened 12.5% y/y to US$ 480.1mn, according to GeoStat. Overall, in 5M18, exports increased 28.0% y/y to US$ 1.3bn, imports were up 23.4% y/y to US$ 3.6bn and the trade deficit widened 20.9% y/y to US$ 2.3bn.
Increased exports of copper (+47.7% y/y), ferro-alloys (+184.6% y/y), cars (+67.1% y/y) and wine (+33.7% y/y) were the major commodities driving exports growth in May 2018. A 16.7% (-16.5% y/y) of exports were directed to the EU, 47.6% (+74.9% y/y) to the CIS and 35.7% (+84.3% y/y to other countries.
Petroleum (+36.6% y/y), cars (+20.9% y/y), air-turbines (111x higher y/y) and pharmaceuticals (+11.9% y/y) represented the major imported commodities in May 2018.
Producer prices up 8.4% y/y in May 2018
Producer price index was up 8.4% y/y in May 2018. Rising prices in manufacturing (+7.1% y/y) and electricity, gas and water supply (+15.2% y/y) contributed the most to the overall index change.
NBG Purchased US$ 10.0mn
On 22 June 2018, the NBG intervened on the FX market for the second time this year and purchased US$ 10.0mn on its foreign exchange auction. YTD, the NBG purchased US$ 30.0mn.
