Trade deficit down 1.2% y/y in 9M15
In 9M15, trade deficit narrowed 1.2% y/y to US$ 4.0bn as exports decreased 23.7% y/y to US$ 1.6bn, while imports fell 8.9% y/y to US$ 5.7bn, according to GeoStat’s preliminary figures. Excluding one-offs (donated c-hepatitis medicine imports), the trade deficit was down 9.0% y/y to US$ 3.7bn, as imports fell 14.1% y/y to US$ 5.3bn. Notably, the lower imports supported external adjustment and eased pressure on GEL. Detailed statistics will be available on October 21, 2015.
Money transfers down 32.9% y/y in September 2015 and down 26.8% y/y in 9M15
Money transfers decreased 32.9% y/y to US$ 88.6mn in September 2015, according to NBG. The 45.0% y/y decline from Russia (41.5% of total) and 62.7% y/y drop from Greece (down 6.0ppts y/y to 7.5% of total) were the major contributors to a decline in total money transfers. As in previous months, remittances posted strong growth from USA +18.2% y/y (9.9% of total), Israel +24.3% y/y (3.3% of total), and Germany +19.8% y/y (2.8% of total), while transfers from Turkey decreased 14.9% y/y (5.8% of total). In 9M15, money transfers decreased 26.8% y/y to US$ 802.9mn.
International cooperation continues
Tbilisi hosted the Silk Road Forum, a joint effort by the Government of Georgia, the Government of People’s Republic of China, and the Asian Development Bank, on October 15-16, 2015. This event aims to establish a platform for an annual high level meeting of all interested states and international organizations in order to explore opportunities and enhance partnership in four main areas of cooperation: transport, energy, trade, and business-to-business contacts.
The European Investment Bank (EIB) lends Georgia EUR 100mn to finance rehabilitation and extension of the municipal sewerage system and the construction of a mechanical biological wastewater treatment plant in the country’s second largest city of Kutaisi. The total project cost, which addresses water supply and wastewater investments in several municipalities in western Georgia, is EUR 280mn, co-financed by the ADB (EUR 172mn) and with grants from the Neighbourhood Investment Facility (EUR 4.75mn) and the Eastern Partnership Technical Assistance Trust Fund (EUR 3.25mn), according to the EIB.
