Bank lending increased by 15.6% y/y in Jun-25
In Jun-25, the banking sector loan portfolio increased by 15.6% y/y (+2.1% m/m), excluding FX effect, following a 15.1% y/y growth in previous month. In unadjusted terms, loan portfolio rose by 15.5% y/y (+2.4% m/m), reaching GEL 66.2bn (US$ 24.3bn), after growing 14.7% y/y in May-25. By sector, loans to legal entities increased by 16.5% y/y (excluding FX effect), while retail loans rose by 14.7% y/y. Loan dollarization increased slightly to 43.1% (+0.21ppts m/m and -2.09ppts y/y) in Jun-25.
On the deposits side, there was a 11.6% y/y increase (excluding FX effect) to GEL 60.8bn (US$ 22.3bn) in Jun-25, following a 11.9% y/y growth in previous month. In terms of currency breakdown, GEL deposits grew by 9.5% y/y (+9.1% y/y in May-25) and FX deposits (exc. FX effect) increased by 13.7% y/y (+14.9% y/y in May-25). Notably, deposit dollarization reduced by -1.10ppts m/m to 49.7% in Jun-25, though it remains up 0.61ppts y/y.
NBG purchased US$ 266.0mn in Jun-25
Supported by the continued appreciation of the GEL in June 2025, the NBG intervened in the FX market and bought US$ 266.0mn to build reserves. Cumulatively, the NBG purchased US$ 879.5mn in 1H25.
Goods exports increased by 10.4% y/y in Jun-25
In Jun-25, goods exports increased by 10.3% y/y to US$ 640.2mn, after a 15.7% y/y growth in previous month. Meanwhile, goods imports rose slightly by 0.9% y/y to US$ 1.4bn, after a 1.8% y/y decline in previous month. Consequently, the trade deficit narrowed by 6.2% y/y to US$ 732.8mn in Jun-25.
The top 5 exported commodities were cars (+24.8% y/y), precious metals (+33.9% y/y), fresh fruit (+32.7% y/y), spirits (-11.9% y/y) and wine (+50.1% y/y) in Jun-25. A 10.8% of exports were directed to the EU (+31.3% y/y), 69.6% to the CIS (+17.5% y/y) and 19.6% to other countries (-15.2% y/y).
The top 5 imports were cars (-28.1% y/y), petroleum (-9.9% y/y), pharmaceuticals (+17.9% y/y), phones (+40.3% y/y) and automatic data processing machines (-15.3% y/y) in Jun-25.
Overall, in 1H25, the trade deficit increased by 11.6% y/y to US$ 5.5bn, as exports increased by 13.7% y/y to US$ 3.2bn and imports were up by 12.4% y/y, reaching US$ 8.7bn. Notably, excluding one-off paintings/drawings imports, goods imports rose by 6.2% y/y and the trade deficit was up 1.8% y/y in 1H25.
Producer price index increased by 3.0% y/y in Jun-25
Annual PPI for industrial goods stood at 3.0% y/y in June 2025, down from 4.9% in the previous month. The annual growth was mainly driven by an increase in prices in the manufacturing (+1.6% y/y), followed by mining (+13.8% y/y) and electricity supply (+8.3% y/y) sectors.
