Tourism revenues recovered to 50.8% of 2019 level in Sep-21 Recovery in tourism strengthened in September 2021, with tourist arrivals (overnight stays) recovering to 39% of Sep-19 level, up from an average 33% recovery during Jun-Aug 2021. Notably, tourism revenues recovered faster than arrivals in Sep-21 like in previous months, hitting 50.8% of Sep-2019 level, as in visitor mix tourists are prevailing, spending more than same-day arrivals (note that since recovery started from Apr-21, tourists numbers recovered at an average 30% of 2019 level , while in the same period same-day arrivals accounted for only 5% of 2019 level and therefore revenues are recovering faster). That said, 226.7 thousand international visitors (up 348.8% y/y, tourists and same-day arrivals combined) traveled to Georgia in Sep-21, with most visitors from Russia (14.6% of total), followed by Turkey (14.2% of total), and Ukraine (10.1% of total). Most visitors traveled to Georgia via land (58.1% of total), followed by air (40.8% of total). Overall, in 9M21, international arrivals stood at 1.2mn persons (-13.2% y/y, 19.9% of 2019 level) and tourism revenues reached US$ 865.8mn (+73.5% y/y, 33.5% of 2019 level).
Exports and imports stayed solid in Sep-21
In September 2021, both exports (at US$ 373.6mn, up 12.8% y/y, up 22.3% vs Sep-19) and imports (at US$ 925.8mn, up 23.4% y/y, up 15.1% vs Sep-19) remained solid, according to Geostat, continuation of last three months trend. Notably, last year’s low base and higher world commodity prices markedly boosted imports, resulting trade deficit to widen by 31.8% y/y to US$ 552.2mn (which is also up 10.7% vs Sep-2019).
The top 5 exported commodities were copper (-32.4% y/y), ferro-alloys (+46.4% y/y), cars (+44.9% y/y), nuts (+24.6% y/y) and wine (+22.0% y/y) in Sep-21. A 14.9% of exports were directed to the EU (-5.9% y/y), 48.0% to the CIS (+23.1% y/y) and 37.1% to other countries (+9.7% y/y).
The top 5 imports were copper (-18.6% y/y), petroleum (+102.9% y/y), cars (-8.1% y/y), pharmaceuticals (+9.8% y/y) and automatic data processing machines (+455.7% y/y) in Sep-21.
Overall, in 9M21, trade deficit was up by 19.9% y/y (down 0.5% vs 9M19) to US$ 4.0bn, as economic recovery and higher world commodity prices boosted imports (up 21.6% y/y and up 3.3% vs 9M19), while exports were also solid (up 24.0% y/y and up 9.0% vs 9M19).
Producer price index up 16.8% y/y in September 2021
Annual PPI for industrial goods was 16.8% in August 2021 up from 16.4% in previous month, according to Geostat. Price changes in manufacturing (+19.5% y/y) and electricity, gas, steam and air conditioning (+11.4% y/y) contributed the most to the overall index change in September.
