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G&T Team
ResearchResearch Reports Weekly Market Watch

Weekly Market Watch

Loan portfolio grew by 13.8% y/y in Oct-22 
In Oct-22, the banking sector loan portfolio growth was 13.8% y/y (+0.5% m/m), excluding FX effect, after a 14.4% y/y growth in previous month. In unadjusted terms, loan portfolio increased by 3.7% y/y (flat m/m) to GEL 43.2bn (US$ 15.6bn), after growing by 5.4% in September. By sector,  corporate loans increased by 9.4% y/y (+10.0% y/y in previous month, exc. FX effect) and retail loans increased by 17.9% y/y (+18.7% y/y in previous month). The mortgages growth also slowed to 13.8% y/y in October after growing by 14.7% y/y in previous month. In Oct-22, loan dollarization reduced to 44.6% (-6.70ppts y/y and -0.54ppts m/m) and NPLs stood at 1.8% (-0.29ppts y/y and -0.04ppts m/m). 
Contrary to loans, deposits growth accelerated further, up by 28.0% y/y (+1.6% m/m, exc. FX effect) to GEL 42.3bn (US$ 15.2bn) in Oct-22, after a 26.6% y/y growth in previous month. By currency, in October, GEL deposits growth slowed to 26.7% y/y (+28.4% y/y in previous month), while FX deposits (exc. FX effect) growth accelerated to 28.7% y/y (+25.5% y/y in previous month). The deposit dollarization increased slightly to 57.3%(-3.49ppts y/y and +0.32ppts m/m).

Producer price index retreated significantly to 5.6% y/y in Oct-22 
Annual PPI for industrial goods retreated significantly to 5.6% in Oct-22, after a 9.2% growth in previous month. Price changes in manufacturing (+9.8% y/y) and mining (-19.2% y/y) contributed most to the overall index change in October.

Exports growth slowed to 9.2% y/y in Oct-22 
In Oct-22, exports growth slowed to 9.2% y/y reaching US$ 448.8mn, after a 40.0% y/y growth in previous month. Meanwhile, Imports growth accelerated by 20.1% y/y to US$ 1.1bn in October, after 14.5% y/y growth in September. As a result, the trade deficit increased by 28.6% y/y to US$ 675.7mn, after 1.9% y/y reduction in September. 
The top 5 exported commodities were copper (+5.9% y/y), cars (+101.8% y/y), wine (+23.0% y/y), ferro-alloys (-73.8% y/y) and nuts (-23.0% y/y) in Oct-22. A 23.3% of exports were directed to the EU (+11.5% y/y), 50.9% to the CIS (+20.8% y/y) and 25.7% to other countries (-9.6% y/y).
The top 5 imports were petroleum (+50.1% y/y), cars (+30.9% y/y), copper (+58.5% y/y), pharmaceuticals (-20.5% y/y) and telephones (+78.6% y/y) in Oct-22.
Overall, in 10M22, trade deficit was up by 32.7% y/y to US$ 6.1bn, as exports increased by 34.0% y/y to US$ 4.5bn, and imports were up by 33.3% y/y to US$ 10.7bn.