Real GDP grew 4.8% y/y in 2014
Real GDP grew 4.8% y/y in 2014 while the GDP deflator was 3.8%, according to GeoStat. Nominal GDP reached GEL 29.2bn (US$ 16.5bn) in 2014. Fastest growing sectors were construction (+13.5% y/y), financial intermediation (+10% y/y), real estate (+8.5% y/y), communications (+7.1% y/y), transport (+6.4%) and trade (+6.1%).
VAT turnover increased 15.5% y/y in February 2015
VAT taxpayers’ turnover, major indicator of economic activity, increased by 15.5% y/y in February 2015 according to MOF. This higher turnover rate indicates that output might grow sizably in February; GeoStat’s official estimate for February GDP growth will be released on March 31.
Producer price index up 5.4% y/y and 1.3% m/m in February 2015
Annual PPI increased 5.4% in February 2015 according to GeoStat. The 7.8% y/y increase in manufacturing prices had a major impact on the overall index change (6.4ppts). In electricity, gas and water supply category the prices decreased by 3.9% y/y contributing -0.51ppts to overall price change.
Monthly PPI for industrial products increased 1.3% in February 2015, mainly as a result of the 1.3% increase in manufacturing prices (mostly for foods, beverages, tobacco and basic metals) contributing 1.08ppts to the overall index. The prices fell 5.4% m/m for manufacture of chemical products.
Money transfers down 21.7% y/y in February 2015
Money transfers decreased 21.7% y/y to US$ 82mn in February 2015 according to NBG. The 44.2% y/y drop in transfers from Russia, accounting for 34.4% of total transfers, had a major negative impact. Remittances significantly increased from USA +28.2% y/y (8.7% of total), Turkey +32.9% y/y (7.0%), Israel +51.6% y/y (2.7%), and Germany +15.6% y/y, (2.4%).
NBG sold US$ 40mn
NBG intervened in the FX market on 19 March 2015 and sold US$ 40mn. However, lari weakened by 1.0% d/d against dollar.
