Bank lending increased by 17.4% y/y in Feb-25
In Feb-25, the banking sector loan portfolio increased by 17.4% y/y (+0.6% m/m), excluding FX effect, after a 17.9% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 19.8% y/y (-0.2% m/m), reaching GEL 62.6bn (US$ 22.2bn), after growing 20.8% y/y in Jan-25. By sector, corporate loans grew by 19.3% y/y (excluding FX effect), while retail loans increased by 15.8% y/y. Loan dollarization reduced to 43.1% (-1.12ppts y/y and -0.54ppts m/m) in Feb-25.
On the deposits side, there was a 11.8% y/y increase (excluding FX effect) to GEL 58.0bn (US$ 20.6bn) in Feb-25, after a 12.6% y/y growth in previous month. In terms of currency breakdown, GEL deposits grew by 7.4% y/y (+8.0% y/y in Jan-25) and FX deposits (exc. FX effect) increased by 16.2% y/y (+17.3% y/y in Jan-25). As a result, deposit dollarization reduced by -0.27ppts m/m to 53.1% in Feb-25, but it still up 3.26ppts y/y.
Producer price index increased by 6.1% y/y in Feb-25
Annual PPI for industrial goods increased by 6.1% in Feb-25, after a 7.2% rise in previous month. The annual growth was mainly driven by an increase in prices in the manufacturing sector (+4.5% y/y), followed by mining (+30.1% y/y) and electricity supply (+6.8% y/y) sectors.
