Real GDP up 0.8% y/y in January 2016
Georgia’s real GDP expanded 0.8% y/y in January 2016, according to GeoStat’s rapid estimates. External sector was the major drag on growth as exports suffered, while lower imports supported to keep external balance in check. Banking sector credit portfolio growth was supportive to the economic activity with VAT turnover up 7.2% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Inflation rate at 5.6% y/y and 0.1% m/m in February 2016
Annual CPI inflation rate was recorded at 5.6% in February 2016 (unchanged compared to January), according to GeoStat. Overall prices changes were driven by price increases in food and non-alcoholic beverages (+4.6% y/y, +1.43ppts), health (+10.5% y/y, +1.00ppts), and alcoholic beverages and tobacco (+14.3% y/y, +0.84ppts). Meanwhile, prices in the transport category decreased (-1.5% y/y, -0.22ppts) due to lower prices on fuel.
On a monthly basis, inflation rate was at 0.1% in February 2016. Price increases in alcoholic beverages and tobacco (+7.5% m/m, +0.45ppts) and communication (+4.1% m/m, +0.13ppts) and price decreases in the transport category (-2.3% m/m, -0.28ppts) were the major drivers of the monthly price dynamics.
International arrivals up 23.9% y/y in February 2016
Arrivals posted robust growth of 23.9% y/y to 0.36mn persons in February 2016, according to the Ministry of Internal Affairs. Increased arrivals from Azerbaijan (+41.9% y/y, 31.6% of total), Turkey (+12.2% y/y, 25.3% of total), Russia (+29.2% y/y, 12.0% of total), and Armenia (+7.5% y/y, 20.8% of total) contributed the most to the growth. Arrivals also grew from the EU (+12.1% y/y). In 2M16, total arrivals increased 13.9% y/y to 0.68mn.
Tax revenues up 14.1% y/y in February 2016
Consolidated budget tax revenues increased 14.1% y/y to GEL 544mn in February 2016, after weak performance in January, according to the Treasury Service of Georgia. In 2M15, tax revenues increased 5.8% y/y to GEL 1.1bn.
