Real GDP growth was 4.4% y/y in January 2018
Georgia’s economy expanded 4.4% y/y in January 2018, according to GeoStat’s rapid estimates. In January 2018, the growth was recorded in manufacturing, construction, trade, hotels and restaurants sectors. Growth was down in transport, communication, and electricity, gas and water supply sectors. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Inflation was 2.7% y/y and 0.2% m/m in February 2018
The annual CPI inflation retreated to 2.7% in February 2018 from 4.3% inflation in previous month, according to GeoStat. Core inflation was also down to 1.7% in February from 3.0% in previous month. Annual price changes were driven by price increases in food and non-alcoholic beverages (+3.4% y/y, +1.04ppts), alcoholic beverages and tobacco (+7.4% y/y, +0.49ppts) and transport (+2.9% y/y, +0.41ppts) categories. On a monthly basis, there was 0.2% inflation in February 2018. Price increases in food and non-alcoholic beverages (+0.4% m/m, +0.13ppts), hotels and restaurants (+2.1% m/m, +0.09ppts) and alcoholic beverages and tobacco (+1.2% m/m, +0.08ppts) categories were the major drivers of monthly Inflation dynamics.
NPLs at 2.9% in January 2018
In January 2018, the banking sector loan portfolio increased 19.6% y/y after growing 16.4% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 14.2% y/y and down -1.9% m/m to GEL 21.9bn (US$ 8.8bn). Deposits were up 17.9% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 11.6% y/y and down-3.2% m/m to GEL 19.2bn (US$ 7.7bn). Deposit dollarization reached 64.4% (-7.5ppts y/y and -1.2ppts m/m). NPLs stood at 2.9% in January 2018 (-0.9ppts y/y and +0.1ppts m/m).
