Georgian Weekly Digest 12 June 2017

Economy

Foreign Direct Investments (FDI) in Georgia were up 3.7% y/y and 22.1% q/q in 1Q17 reaching US$ 403mn according to the preliminary data released by GeoStat.

Investment inflows went down from EU (-7.2% y/y) and from CIS (-21.3% y/y), while FDI from other countries increased by 61.8% y/y as of Q1 2017, mostly driven by increased investment inflows from Turkey (+US$ 24mn) and United Arab Emirates (+US$ 40mn).

FDI decreased in Transport sector (-36.2% y/y or -US$ 71mn), Energy sector (-83.1% y/y or -US$ 32mn), Manufacturing (-139.4% y/y or -US$ 19m) and Healthcare (-106.9% y/y or -US$ 18mn) in Q1 2017

International arrivals were up 5.7% y/y to 553.0 thousand in May 2017. The number of visitors from Azerbaijan stood at 121.5 thousand (up 8.5% y/y), followed by Armenia at 120.4 thousand (up 8.9% y/y), Turkey at 101.9 thousand (down 24.4% y/y) and Russia at 99.0 thousand (up 16.8% y/y). Noticeably, arrivals from Iran grew 212.1% y/y to 16.9 thousand in February.

Georgia’s gross international reserves stood at US$ 2.83bn (up 10.0% y/y and 2.9% m/m) as of 31 May 2017. The NBG did not intervene in FX markets during the month. Georgia’s foreign reserves equal 3.7 months’ worth of imports.

 

Debt and Money Market

Eurobonds: during the week Georgia’s Sovereign Eurobond (GEORG 4/21) price was up 0.2% w/w to 111.9 (YTM 3.5%). BGEO Group JSC (BGEOLN 7/23) price was up 0.4% w/w to 101.9 (YTM 5.6%), Georgian Oil & Gas Corporation (GEOROG 4/21) price was down 0.1% w/w to 105.7 (YTM 5.1%), 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 18.18, up by 3.6% w/w. During the week 2,619.2 thousand shares traded on the London Stock Exchange.

During the week 453.4 thousand of BGEO Group PLC (BGEO LN) shares traded, closing at GBP 37.12 (up by 0.6% w/w) on Friday’s trading session.

Georgia Healthcare Group PLC (GHG LN) shares were unchanged w/w closing at GBP 3.50 on Friday. During the week 861.7 thousand GHG shares changed hands on the LSE.

On Georgian Stock Exchange 70.1 thousand shares of Liberty Bank (GG BANK) were traded at GEL 0.0190 per share (up 5.6% from previous trade).

 

Georgian Weekly Digest

June 12, 2017
Economy Foreign Direct Investments (FDI) in Georgia were up 3.7% y/y and 22.1% q/q in 1Q17 reaching US$ 403mn according to the preliminary data released by GeoStat. Investment inflows went down from EU (-7.2% ... learn more

Georgian Weekly Digest

June 5, 2017
Economy Georgia’s real GDP growth rate was 2.1% in April 2017. The rapid estimates for GDP growth are calculated by GeoStat based on VAT numbers, together with fiscal and monetary statistics. Inflation rate ... learn more

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