Trade deficit decreased by 6.8% y/y in Feb-25
In Feb-25, goods exports fell by 7.1% y/y to US$ 431.5mn, after a 19.3% y/y growth in previous month. Similarly, goods imports declined by 6.9% y/y to US$ 1.1bn, after a significant increase of 47.8% y/y growth in previous month. Consequently, the trade deficit decreased by 6.8% y/y to US$ 668.3n in Feb-25.
Overall, in 2M25, the trade deficit rose by 27.9% y/y to US$ 1.9bn, driven by a 4.0% y/y increase in exports, totaling US$ 835.4mn, while imports grew by 19.5% y/y, reaching US$ 2.7bn.
NBG kept its key rate unchanged at 8.0%
On March 12, 2025, the Monetary Policy Committee of the NBG maintained its key interest rate unchanged at 8.0%. This decision considered January’s strong economic growth, rising inflation in February, and increased global uncertainty from tariff policies. The NBG anticipates inflation to converge its target level in 1H25, with a potential temporary increase before stabilizing around 3.0% in the medium term. Future interest rate adjustments will be based on updated economic forecasts and risk assessments, the regulator noted. The next NBG meeting is scheduled for May 7, 2025.
FDI in Georgia increased by 24.4% y/y in 4Q24
FDI in Georgia increased by 24.4% y/y to US$ 367.5mn in 4Q24, after a 55.2% y/y decline in 3Q24. This rebound was solely driven by a US$ 214.7mn y/y reduction in debt outflows. Meanwhile, both reinvestments (-28.1% y/y to US$ 291.7mn) and equity investments (-14.9% y/y to US$ 164.2mn) fell during the same period.
The financial sector was the largest FDI recipient at US$ 314.9mn (+8.7% y/y), followed by real estate at US$ 65.8mn (+129.1% y/y), manufacturing at US$ 23.1mn (+205.7% y/y), ICT at US$ 18.8mn (+132x y/y) and transport at $ 15.6mn (-38.6% y/y). Meanwhile, FDI reduced in trade (-US$ 45.8mn) and energy (-US$ 23.8mn) sectors in 4Q24.
The UK topped the list of investors with US$ 222.6mn (60.6% of total FDI), followed by Malta at US$ 67.9mn (18.5% of total) and Netherlands at US$ 36.3mn (9.9% of total).
Overall, in 2024, FDI declined by 29.9% y/y to US$ 1.3bn accounting for 4.0% of GDP.
