FDI up 17.6% y/y in 3Q17
FDI in Georgia stood at US$ 594.5mn (+17.6% y/y) in 3Q17, according to GeoStat’s preliminary figures. Similar to previous quarters, the transport and communications sector was the largest FDI recipient at US$ 177.8mn (-13.5% y/y, 29.9% of total) in 3Q17, followed by the construction at US$ 116.2mn (+85.6 y/y, 19.5% of total). Azerbaijan topped the list of investors with US$ 154.1mn, followed by Turkey with US$ 138.6mn and UK with US$ 63.4mn.
Exports up 8.2% y/y in November 2017
In November 2017, exports increased 8.2% y/y to US$ 236.7mn, imports were up 16.9% y/y to US$ 757.7mn and the trade deficit widened 21.4% y/y to US$ 521.0mn according to GeoStat’s preliminary figures. In 11M17, trade deficit was up 1.2% to US$ 4.7bn as exports increased 27.0% y/y to US$ 2.4bn, while imports were up 8.8% y/y to US$ 7.1bn. Detailed foreign trade statistics will be available on December 19, 2017.
Money transfers up 24.8% y/y in November 2017
In November 2017, money transfers increased 24.8% y/y to US$ 122.1mn after growing 20.0% y/y in previous month, according to NBG. Money transfers were up from all major remitting countries: Russia (+10.4% y/y, 32.1% of total), Italy (+29.3% y/y, 10.5% of total), Greece (+47.3% y/y, 10.2% of total), USA (+11.7% y/y, 9.5% of total), Israel (+93.6% y/y, 9.4% of total) and Turkey (+17.1% y/y, 7.8% of total). In 11M17 money transfers were up 20.2% y/y to US$ 1.2bn.
NBG Increases its policy rate to 7.25%
At its meeting on 13 December 2017, NBG’s monetary policy committee decided to increase its policy rate by 0.25 percentage points to 7.25%. According to NBG, the nominal effective exchange rate depreciated significantly following its last monetary policy meeting on October 25. This increased the pressure on prices and inflation came in at 6.9% in November. The regulator noted that decision on further tightening of the monetary policy as well as its duration would depend on the reduction of the exchange rate-related pressure on prices. NBG anticipates that the inflation will start declining with the expiration of one-off factors in the beginning of 2018. The next committee meeting is scheduled for 31 January 2018.
