Real GDP up 2.8% y/y in 4Q16 and up 2.7% y/y in 2016
Real GDP increased 2.8% y/y in 4Q16 after growing 2.2% y/y in 3Q16, according to GeoStat’s preliminary figures. As a result, annual GDP growth was 2.7% in 2016 (revised upward by 0.5ppts compared to rapid estimates). The growth base in 2016 was diversified, with all sectors posting increases other than transport (-0.9% y/y) and communication (-0.2% y/y) sectors. Fastest growing sectors in 2016 were:  hotels and restaurants (+9.9% y/y), financial intermediation (+9.3% y/y), and construction (+8.1% y/y).  

Exports up 12.7% y/y in February 2017 
In February 2017, exports increased 12.7% y/y to US$ 178.9mn, imports were up 13.8% y/y to US$ 590.7mn, and the trade deficit widened 14.2% y/y to US$ 411.8mn according to GeoStat. Increased exports of ferro-alloys (+337.1% y/y), wine (+35.1% y/y), pharmaceuticals (+80.6% y/y) and mineral waters (+20.5% y/y) were the major commodities positively affecting exports growth in February 2017, while copper (-23.0% y/y), and cars (-22.1% y/y) re-exports decreased. 

Gases (+62.8% y/y), petroleum (+53.8% y/y), copper (+77.0% y/y), cars (-16.8% y/y), and pharmaceuticals (+48.9% y/y) represented the top 5 imported commodities in February 2017. 
In 2M17, trade deficit was up 9.6% y/y to US$ 0.7bn, as imports were up 14.8% y/y to US$ 1.1bn and exports were up 26.6% y/y to US$ 0.4bn.

Producer price index up 1.0% m/m and up 9.6% y/y in February 2017
PPI for industrial goods increased 1.0% m/m in February 2017, according to GeoStat. A 0.7% price increase for manufacturing contributed the most to the overall index change as prices were up for manufacture of food products, beverages and tobacco (+1.8% m/m), and rubber and plastic products (+5.3% m/m).  
Annual PPI was up 9.6% in February 2017. Rising prices in manufacturing (+8.5% y/y) contributed the most to the overall index change. Prices were also up for supply of electricity, gas and water (+12.8% y/y) and for mining and quarrying (+21.0% y/y).

NPLs at 3.8% y/y in February 2017
In February 2017, the banking sector loan portfolio increased 12.4% y/y after growing 11.7% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 15.3% y/y to GEL 18.7bn (US$ 7.2bn). Deposits were up 9.8% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 13.1% y/y to GEL 16.5bn (US$ 6.4bn). Deposit dollarization was down to 70.4% (-1.4ppts y/y and m/m). NPLs stood at 3.8% in February 2017, up 0.5ppts y/y and flat m/m.