Real GDP up 3.0% y/y in 2Q16
Real GDP grew 3.0% y/y according to GeoStat’s preliminary data. GDP deflator was 0.7% y/y. The growth base in 2Q16 was diversified, with mining generating the largest increase at 24.1% y/y. Construction (+12.8% y/y), hotels and restaurants (+10.8% y/y), financial intermediation (+9.4% y/y), and manufacturing (+8.3% y/y) sectors were the other top performers. Transport (-5.8% y/y) and trade (-2.8% y/y) were the only sectors in the red in 2Q16. Nominal GDP base was diversified with industry accounting for the largest share (16.6%), followed by trade (15.1%), and agriculture (10.6%).
Trade deficit down 0.7% y/y excluding one-offs in 8M16
In August 2016, exports were flat y/y at US$ 190mn, imports were up 9.5% y/y to US$ 684mn, and the trade deficit was up 13.7% y/y to US$ 493mn according to GeoStat. Reduced ferro-alloys exports (-40.6% y/y) and nuts exports (-31.6% y/y) were the major commodities negatively weighing on exports in August 2016, while copper ores (+45.9% y/y), cars (+18.1% y/y), and wine (+33.5% y/y) posted increases.
Petroleum (-30.5% y/y), cars (+14.3% y/y), copper ores (+76.0% y/y), pharmaceuticals (-2.2% y/y), and phones (+37.5% y/y) represented the top 5 imported commodities in August 2016.
In 8M16, trade deficit was down 0.7% y/y to US$ 3.24bn, excluding one-offs, as imports were down 3.6% y/y to US$ 4.55bn and exports fell 10.0% y/y to US$ 1.31bn.
NBG sold US$ 20mn
Last week, NBG intervened on the FX market and sold US$ 20mn. Overall, NBG bought total of US$ 278mn and sold US$ 100mn at 19 interventions YTD. GEL weakened 0.2% w/w and strengthened 3.3% YTD against the US$.
