Georgian Weekly Digest 22 May 2017

Economy

In April 2017, trade deficit shrank by 2.9% y/y to US$ 379.9mn on the back 28.0% y/y increase in exports to US$ 211.6mn and a 6.3% y/y increase in imports to US$ 591.6mn.

In April 2017 exports to CIS were up 65.0% y/y to US$ 90.6mn, exports to EU were down 1.7% y/y to US$ 36.0mn, while exports to other regions increased 15.2% y/y to US$ 85.0mn. Russia was the single largest destination for exports, up 128.7% y/y to US$ 35.4mn, followed by China at US$ 28.8mn (up 16.3% y/y) and Turkey at US$ 21.3mn (up by 51.5% y/y). In terms of product groups, exports of copper ores was up 38.8% y/y to US$ 40.2mn, followed by ferro-alloys (US$ 29.8mn, up 72.6% y/y), Medical goods (US$ 13.4mn, up 57.2% y/y), Cars (US$ 12.3mn¸ up 14.2% y/y) and Wines (US$ 9.7mn, up 6.9% y/y).

In April 2017 petroleum imports were up 39.5% y/y to US$ 58.4mn, followed by Copper ores (US$ 39.3mn, up 184.2% y/y), Cars (US$ 37.8mn, up 1.6% y/y) and Natural gas (US$ 20.6mn, up 8.7% y/y).

In April 2017 money transfers were up by 11.6% y/y to US$ 105.8mn. The increase was mainly driven by transfers from Russia (US$ 35.4mn, up 12.1% y/y), USA (US$ 11.2mn, up 12.8% y/y), Italy (US$ 10.1mn, up 3.0% y/y), Israel (US$ 9.0mn, up 92.4% y/y) and Turkey (US$ 8.6mn, up 19.2% y/y).

Producer Price Index (PPI) for Industrial Products increased 9.0% y/y and decreased 1.3% m/m in April 2017. The main contributing groups to the increase in annual PPI were Basic metals and fabricated metal products (+4.59ppts, up 32.1% y/y), food products, beverages and tobacco (+3.26ppts, up 8.3% y/y) and electrical energy, gas, steam and hot water (+1.33ppts, up 9.4% y/y).

 

Debt and Money Market

Eurobonds: during the week Georgia’s Sovereign Eurobond (GEORG 4/21) price was down 0.1% w/w to 111.2 (YTM 3.7%). BGEO Group JSC (BGEOLN 7/23) price was down 0.1% w/w to 101.4 (YTM 5.7%), Georgian Oil & Gas Corporation (GEOROG 4/21) price was down 0.1% w/w to 105.5 (YTM 5.2%), while Georgian Railway (GRAIL 7/22) price was down 0.1% w/w to 110.7 (YTM 5.3%).

 

Equity Market

On Friday’s trading session, TBC Bank Group PLC (TBCG LN) shares closed at GBP 16.03, up by 1.0% w/w. During the week 329.1 thousand shares traded on the London Stock Exchange.

During the week 412.3 thousand of BGEO Group PLC (BGEO LN) shares traded, closing at GBP 36.84 (up by 0.3% w/w) on Friday’s trading session.

Georgia Healthcare Group PLC (GHG LN) shares were down by 4.0% w/w closing at GBP 3.45 on Friday. During the week 10,536.7 thousand GHG shares changed hands on the LSE.

No trades were recorded on Georgian Stock Exchange.

 

Georgian Weekly Digest

May 22, 2017
In April 2017, trade deficit shrank by 2.9% y/y to US$ 379.9mn on the back 28.0% y/y increase in exports to US$ 211.6mn and a 6.3% y/y increase in imports to US$ 591.6mn. ... learn more

Georgian Weekly Digest

May 8, 2017
The National Bank of Georgia (NBG) increased its policy rate by 25 basis points to 7.00%. The NBG expects inflation to overshoot its target for 2017 of 4% due to supply side factors and to approach the 2018 ta ... learn more

Georgian Weekly Digest

May 1, 2017
Georgia’s real GDP growth rate was 5.3% in March 2017 while average real GDP growth in Q1 2017 was 5.0%. The rapid estimates for GDP growth are calculated by GeoStat based on VAT numbers, together with fiscal ... learn more

Georgian Weekly Digest

April 10, 2017
Inflation rate amounted to 5.4% y/y and -0.5% m/m in March 2017 while core inflation (excluding food items and energy products) stood at 2.9% y/y. Annual inflation decreased slightly from previous month but is ... learn more