Real GDP growth was 5.8% y/y in Jan-24
Georgia’s real GDP growth came in at 5.8% y/y in Jan-24, after growing by 8.3% in previous month. The construction, financial and ICT sectors were the primary drivers of growth in January. In contrast, the trade, real estate and manufacturing sectors contracted during the same period.
For 2024, we forecast real GDP to grow by 6.0% in our baseline scenario and by 7.0% in upside scenario
Bank lending increased by 15.9% y/y in Jan-24
In Jan-24, the banking sector loan portfolio increased by 15.9% y/y (-1.1% m/m), excluding FX effect, after a 17.1% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 16.6% y/y (-1.6% m/m), reaching GEL 51.8bn (US$ 19.3bn), after growing 17.6% y/y in Dec-23. By sector, corporate loans increased by 18.4% y/y (exc. FX effect) in January and retail loans were up 13.8% y/y. Loan dollarization reduced to 44.7% (-0.29ppts y/y and -0.54ppts m/m) in January.
Bank deposits increased by 15.3% y/y (exc. FX effect) to GEL 50.7bn (US$ 18.9bn) in Jan-24, after growing by 14.1% y/y in previous month. In terms of currency breakdown, GEL deposits increased by 29.3% y/y and FX deposits growth (exc. FX effect) stood at 3.9% y/y. As a result, the level of deposit dollarization came in at 49.8% (-5.11ppts y/y and -0.95ppts m/m) in Jan-24.
