Real GDP grew 4.3% y/y in August 2017
Georgia’s economy expanded 4.3% y/y in August 2017, after growing 3.8% y/y in previous month, according to GeoStat’s rapid estimates. Overall, in 8M17 GDP growth was 4.7% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit stood at 7.4% of GDP in 2Q17
Current account deficit narrowed to 7.4% of GDP in 2Q17 from 12.3% in 2Q16, decreasing 39.4% y/y in nominal terms to US$ 276.2mn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, decreased 12.7% y/y to US$ 858.3mn, as exports increased 25.4% y/y, while imports were up 3.4% y/y. Positive balance in services, the largest positive item of the current account, was up 38.7% y/y to US$ 507.3mn. Among services, tourism had the largest positive balance and tourism revenues increased 27.8% y/y to US$ 658.7mn (17.6% of GDP). Net current transfers, the second largest positive item of the current account, were up 4.4% y/y to US$ 316.9mn. Net FDI, significant item for the financing of the current account deficit, amounted to US$ 289.3mn (7.7% of GDP, down -13.4% y/y). The largest investment inflows were directed to transport and construction sectors.
NPLs at 3.3% in August 2017
In August 2017, the banking sector loan portfolio increased 13.6% y/y after growing 13.1% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 19.8% y/y and 0.9% m/m to GEL 19.7bn (US$ 8.1bn). Deposits were up 18.2% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 22.2% y/y and up 5.0% m/m to GEL 17.8bn (US$ 7.3bn). Deposit dollarization reached 65.5% (-3.5ppts y/y and flat m/m). NPLs stood at 3.3% in August 2017(-0.7% y/y and -0.1% m/m).
