Real GDP shrinks 7.7% y/y in November 2020
Georgia’s economy contracted by 7.7% y/y in November 2020 after falling 3.9% y/y in October, according to Geostat’s rapid estimates. In November, positive real growth was recorded in manufacturing, financial & insurance activities, information & communication and water supply, sewerage & waste management activities. Meanwhile real growth was down in construction, transportation, recreation, accommodation and trade. Overall, real GDP contracted by 5.9% y/y in 11M20. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Current account deficit at 13.0% of GDP in 3Q20
Current account deficit came in at 13.0% of GDP or US$ 556.7mn, according to NBG. Merchandize trade deficit, traditionally the major contributor to deficit creation, declined by 18.3% y/y to US$ 770.5mn, as exports fell by 5.7% y/y, while imports were down by 11.1% y/y. Negative balance in services totaled US$ 45.3mn (1.1% of GDP), reflecting the drop of tourism inflows due to COVID pandemic. Surplus in current transfers increased by 35.5% y/y to US$ 474.2mn (11.0% of GDP) financing 62% of trade deficit. Notably, other investments at US$ 467.4mn (10.9% of GDP) were key funding source of CA deficit and net FDI stood at US$ 185.4mn (4.3% of GDP).
NBG sold US$ 30mn
On 30 December 2020, the NBG intervened on the FX market and sold US$ 30mn to limit GEL volatility. Overall in 2020, NBG sold US$ 873.2mn through FX auctions.
