Real GDP growth was 4.5% in 4Q and 4.7% in 2018
Georgia’s real GDP growth in 4Q18 was revised downwards to 4.5% from 4.8% rapid estimate by Geostat. Growth was 4.7% for the full year. In 2018, the financial intermediation was the fastest growing sector (+13.5% y/y), followed by other community, social and personal service activities (+13.2% y/y), real estate operations (+12.1% y/y) and hotels and restaurants (+9.7% y/y) sectors. In 2018, real growth was only down in construction sector by 3.1% y/y, explained by delays in public infrastructure spending as well as completion of BP gas pipeline construction.
Exports up 19.1% y/y in February 2019
In February 2019, exports increased by 19.1% y/y to US$ 266.3mn, while imports were up 0.6% y/y to US$ 642.7mn. As a result, the trade deficit dropped 9.3% y/y to US$ 376.5mn, according to Geostat. In February 2019, copper (-12.5% y/y), ferro-alloys (+53.1% y/y), cars (+34.4% y/y), wine (+30.9% y/y) and pharmaceuticals (+104.1% y/y) were the top 5 exported commodities. A 22.0% of exports was directed to the EU (-14.3% y/y), 48.6% to the CIS (+37.5% y/y) and 29.4% to other countries (+27.8% y/y).
Petroleum (+6.2% y/y), gases (+6.8% y/y), pharmaceuticals (+99.8% y/y), copper (+11.0% y/y) and cars (-18.6% y/y) represented the top 5 imported commodities in February 2019.
Overall, in 2M19, trade deficit was down 7.3% to US$ 729.7mn as exports increased by 13.2% y/y and imports growth was flat.
Producer price index up 3.3% y/y in February 2019
Annual PPI for industrial goods was up 3.3% in February 2019 according to Geostat. Rising prices in manufacturing (+4.0% y/y) contributed the most to the overall index change.
