Goods exports increased by 30.0% y/y in Aug-24
In Aug-24, goods exports continued to grow robustly, rising by 30.0% y/y to US$ 641.3mn, following a 29.9% y/y growth in previous month. In contrast, imports declined by 4.8% y/y to US$ 1.3bn, after a 11.2% growth y/y in previous month. Consequently, the trade deficit decreased by 23.5% y/y to US$ 702.7mn in Aug-24. Overall, in 8M24, trade deficit increased by 3.8% y/y to US$ 6.4bn, as exports increased by 2.4% y/y to US$ 4.2bn and imports were up by 3.3% y/y to US$ 10.5bn.
FDI in Georgia stood at US$ 574.3mn in 2Q24
FDI in Georgia increased by 10.3% y/y to US$ 574.3mn, after falling by 69.9% y/y in 1Q24. The growth in FDI was primarily driven by a rise in equity investments and debt instruments. Meanwhile, reinvestments reduced by 8.9% y/y to US$ 451.3mn, representing 78.6% of total FDI during the same period.
The financial sector was the largest FDI recipient at US$ 300.1mn (+38.5% y/y), followed by trade at US$ 79.2mn (-4.5% y/y), manufacturing at US$ 55.5mn (+36.5% y/y) and real estate at US$ 47.2mn (+143.0% y/y).
The UK topped the list of investors with US$ 266.7mn (46.4% of total FDI), followed by Japan (US$ 59.2mn, 10.3% of total) and Malta at US$ 37.9mn, 6.6% of total).
Overall, in 1H24, FDI declined by 34.1% y/y to US$ 768.6mn accounting for 5.1% of GDP.
NBG kept its key rate unchanged at 8.0%
On September 11, 2024, the NBG’s Monetary Policy Committee decided to keep its key rate unchanged at 8.0%, despite the current low inflation environment. This cautious stance reflects the high level of global economic uncertainty, which could lead to inflationary pressures. Amid ongoing geopolitical tensions, disruptions in supply chains and international shipping continue. In this context, trends in oil and food prices on global markets remain highly uncertain, posing risks of increased imported inflation. Additionally, strong economic growth adds to inflationary concerns, stated by the regulator. Based on NBG’s current forecast, low inflation is expected to persist throughout 2024, stabilizing at the target rate of 3.0% in the medium term. The next committee meeting is scheduled for 23 October 2024.
