Tourist arrivals up 34.2% y/y in September 2016
Tourist arrivals to Georgia posted spectacular growth at 34.2% y/y to 0.30mn persons in September 2016 after growing 17.3% y/y in previous month. Tourist arrivals accounted for 48.3% of total international arrivals, which increased 11.0% y/y to 0.63mn persons in September 2016, according to the Ministry of Internal Affairs. Out of top countries by arrivals, visitors continued to increase from Russia (+31.3% y/y), Azerbaijan (+7.6% y/y), Armenia (+4.2% y/y), and Ukraine (+28.1% y/y), while arrivals were down from Turkey (-21.4% y/y, 17.2% of total). In 9M16, the number of total arrivals was up 8.6% y/y to 4.9mn persons, while the number of tourists increased 19.8% y/y to 2.2mn persons.

Inflation rate at 0.1% y/y and 0.3% m/m in September 2016 
The annual CPI inflation rate retreated to 0.1% y/y in September 2016 from 0.9% in the previous month, while core inflation was at 1.5% y/y, according to GeoStat. Overall price changes were driven by price increases in alcoholic beverages and tobacco (+11.2% y/y, +0.69ppts), and restaurants and hotels (+4.8% y/y, +0.20ppts) categories. Meanwhile, prices in the transport category decreased (-7.8% y/y, -0.92ppts), as prices were down for purchase of vehicles and for operation of personal transport equipment. 
On a monthly basis, inflation rate was 0.3% in September 2016. Price increases in food and non-alcoholic beverages (+0.9% m/m, +0.30ppts) and housing, water, electricity and other fuels (+0.8% m/m, +0.07ppts) categories and a price decrease in the transport category (-1.0% m/m, -0.12ppts) were the major drivers of monthly inflation dynamics.

NBG sold US$ 60mn
Last week, NBG intervened on the FX market twice and sold US$ 60mn, aimed at curbing fluctuation of the national currency. Overall, NBG bought total of US$ 278mn and sold US$ 200mn at 22 interventions YTD. GEL weakened 0.7% w/w and strengthened 2.9% YTD against the US$.

International reserves down 1.0% m/m in September 2016 
Gross international reserves decreased 1.0% m/m (-US$ 30.2mn) and increased 16.0% y/y (+US$ 393.9mn) to US$ 2.86bn as of end-September 2016, according to NBG. The decrease in reserves on a monthly basis was attributed to NBG’s FX interventions.

Property registration up 39.8% y/y in August 2016
Property registration (commercial and residential real estate) increased 39.8% y/y (+10.1% m/m), reaching 56,496 units in August 2016, according to the National Agency of Public Registry. Registration increased for primary (+109.6% y/y, 27.7% of total), as well as secondary (+24.0% y/y, 72.3% of total) properties.

IMF revises up Georgia’s growth forecast
According to IMF’s latest world economic outlook (released 4 October 2016), forecast of global growth was revised down by 0.1ppts to 3.1% in 2016. Meanwhile, Georgia’s growth forecast for 2016 was revised up to 3.4% from 2.5% projected in April 2016 and IMF expects 5.2% growth in Georgia in 2017 vs. 4.5% projected in April. 

M2 bond issuance
Real Estate Development company, M2 completed its fourth successful issuance of US$ 25mn bonds on October 7, 2016. See details on fixed income page.