Trade deficit narrowed by 4.4% y/y in May-24
In May-24, goods exports reduced by 5.7% y/y to US$ 510.8mn, after a 12.7% y/y decline in previous month. Similarly, imports decreased by 4.9% y/y to US$ 1.3bn, reversing from a 13.8% y/y growth in April. Consequently, the trade deficit narrowed by 4.4% y/y to US$ 754.6mn in May-24.
Overall, in 5M24, trade deficit increased by 7.1% y/y to US$ 3.9bn, as exports declined by 9.2% y/y to US$ 2.3bn, while imports increased slightly by 0.5% y/y to US$ 6.1bn.
FDI in Georgia stood at US$ 201.4mn in 1Q24
FDI in Georgia decreased by 64.4% y/y to US$ 201.4mn. This reflects a 46.6% y/y reduction in equity component due to last year’s high base (Indorama’s purchase of JSC Rustavi Azot) and a 17.3% y/y drop in reinvestment, according to Geostat’s preliminary figures. Additionally, a technical reduction in the financial sector, stemming from the purchase of Ameria Bank, contributed to the overall decrease.
The energy sector was the largest FDI recipient at US$ 78.7mn (+21.4% y/y), followed by trade at US$ 39.5mn (-56.5% y/y), transportation & storage at US$ 38.8mn (-10.4% y/y) and manufacturing at US$ 25.3mn (-88.8% y/y).
The Türkiye topped the list of investors with US$ 42.4mn (21.0% of total FDI), followed by the Czech Republic (US$ 41.5mn, 20.6% of total), USA (US$ 33.7mn, 16.7% of total) and the Netherlands (US$ 32.3mn, 16.1% of total).
NBG sold US$ 60.0mn
On June 11, 2024, the NBG sold US$ 60mn in an FX auction. According to the NBG, this intervention aimed to mitigate the negative impact on market expectations from large one-time transactions. This sale marks the 3rd sell-side intervention in FX auctions, cumulatively totaling US$ 168.7mn year-to-date. In addition to auctions, the NBG has been a net buyer of US$ 286.6mn through the BMatch platform in 4M24 (May figures will be available at end- June). Considering these figures and our estimates for May, the NBG remains a net buyer of US$ 90mn year-to-date.
