FDI at US$ 1.35bn in 2015
FDI in Georgia hit US$ 1.35bn in 2015, a 23.2% decline compared to 6 year high FDI in 2014, according to GeoStat’s preliminary figures. In 4Q15, FDI decreased 49.1% y/y to US$ 268mn, according to preliminary figures (Geostat will release final figures in August 2016).
In 2015, similarly to 2014, the transport and communications sector was the largest FDI recipient at US$ 594.0mn (+37.0% y/y, 44.0% of total), followed by the financial sector at US$ 191.2mn (+65.8% y/y), and the construction sector at US$ 129.1mn (-59.2% y/y). Azerbaijan topped the list of investors at US$ 541.8mn (+58.7% y/y, 40.1% of total), followed by United Kingdom at US$ 198.4mn (+84.5% y/y), and Netherlands at US$ 111.0mn (-70.3% y/y, 8.2% of total).
Gross international reserves stood at US$ 2.4bn as of end-Feb 2016
Gross international reserves decreased 0.9% m/m (-US$ 21.6mn) to US$ 2.4bn as of end-February 2016, according to NBG. On an annual basis, gross reserves fell 1.8% y/y (-US$ 43.6mn). The fall in reserves was attributed to government FX operations and/or asset revaluation.
NBG keeps its policy rate unchanged at 8.0%
At its meeting on March 9, 2016, NBG’s monetary policy committee decided to keep the policy rate unchanged at 8.0%. NBG cited that monetary tightening has already resulted in decreased inflationary expectations. NBG expects that inflation will start decreasing after 1Q16 but will remain within the target level of 5.0% in 2016. The next committee meeting is scheduled for April 4, 2016.
Strong job creation in business sector continued in 4Q15
In 4Q15, production of goods and services by the business sector increased 7.5% y/y to GEL 7.4bn. Production was up in all sectors except manufacturing (down 3.3% y/y), with particularly robust growth in mining (+60.3% y/y), and hotels and restaurants (+43.3% y/y). Like in previous quarters job creation was strong – number of employed persons increased 9.3% y/y to 584 thousand persons (+49.5 thousand persons y/y and +15.8 thousand persons q/q), with particularly upward trend in agriculture (+23.8% y/y, 2% of total), trade (+17.7% y/y, 24.4% of total), hotels and restaurants (+25.1% y/y, 5.3% of total), and operations in real estate (+11.3% y/y, 9.9% of total).
Property registration up 17.3% y/y in Feb-2016
Property registration (commercial and residential real estate) increased 17.3% y/y (+49.4% m/m), reaching 53,213 units in February 2016, according to the National Agency of Public Registry. Registration increased for both primary (+44.5% y/y, 21.4% of total) and secondary (+11.6% y/y, 78.6% of total) properties.
