Trade deficit down 27.7% y/y in June 2020
In June 2020, exports decreased by 14.0% y/y to US$ 266.9mn, after falling 31.3% in previous month and imports fell by 22.0% y/y to US$ 576.3mn after a 36.8% y/y drop in previous month. As a result, trade deficit narrowed by 27.7% y/y to US$ 309.4mn, according to Geostat.
In June 2020, copper (+62.8% y/y), cars (-46.6% y/y), wine (+24.2% y/y), spirits (+18.7% y/y) and pharmaceuticals (-38.3% y/y) were the top 5 exported commodities. A 23.4% of exports was directed to the EU (-4.3% y/y), 40.8% to the CIS (-35.7% y/y) and 35.7% to other countries (+26.6% y/y).
Cars (-54.4% y/y), petroleum (-43.4% y/y), copper (+13.4% y/y), pharmaceuticals (-13.0% y/y) and precious metals (+US$ 17.4mn) represented the top 5 imported commodities in June 2020.
Overall, in 1H20, trade deficit was down 21.3% to US$ 2.0bn as exports reduced by 16.0% y/y to US$ 1.5bn and imports decreased by 19.1% y/y to US$ 3.6bn.
Producer price index up 10.1% y/y in June 2020
Annual PPI for industrial goods retreated to 10.1% y/y in June 2020, after 12.7% y/y growth in previous month, according to Geostat. Price changes in manufacturing (+9.8% y/y) and mining (+24.5% y/y) contributed the most to the overall index change.
NBG sold US$ 40mn
On 22 July 2020, the NBG intervened on the FX market and sold US$ 40mn to limit GEL’s volatility. This was 9th FX intervention YTD for a total sale of US$ 269.7mn through FX auctions.
GGU has issued the first-ever green bond from Georgia
Georgia Global Utilities (GGU), water utility and renewable energy business under Georgia Capital, has successfully priced an inaugural US$ 250mn green bond offering on 23 July 2020. The bond with a 5-year non-call 2 year bullet maturity, paying 7.75% coupon rate, is expected to settle on 30 July 2020. The bond is being issued and sold at par value. The proceeds of the bond will be used to refinance all existing loan arrangements of GGU and to finance capital expenditures in the water supply and sanitation business. The bond is expected to be listed on the Global Exchange Market of the Irish Stock Exchange and to be rated B+ (stable) by Fitch and B (positive) by S&P.
