Real GDP growth was 3.5% y/y in January 2019
Georgia’s economy grew by 3.5% y/y in January 2019, according to Geostat’s rapid estimates. In January 2019, the growth was recorded in trade, hotels and restaurants, financial intermediation and real estate operations. Growth was down in manufacturing and construction sectors, the former likely related to reduced exports of manufactured items, while the latter reflected completion of BP gas pipeline construction and delays in public infrastructure projects. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
NPLs at 3.0% in January 2019
In January 2019, the banking sector loan portfolio increased 16.7% y/y after growing 17.2% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 20.8% y/y and down 0.7% m/m to GEL 26.4bn (US$ 9.9bn). Deposits were up 13.2% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 17.9% y/y and down 2.0% m/m to GEL 22.6bn (US$ 8.5bn). Deposit dollarization reduced to 62.5% (-1.9ppts y/y and -0.6ppts m/m), while loan dollarization rose to 57.0% (+0.9ppts y/y and +0.1ppts m/m). NPLs stood at 3.0% in January 2019 (+0.1ppts y/y and +0.3ppts m/m).
