Georgia's import prices dropping – TBC Capital

Georgia Materials 25 October 2021 16:02 (UTC +04:00)
Georgia's import prices dropping – TBC Capital

BAKU, Azerbaijan, Oct. 25

By Maryana Akhmedova – Trend:

Along with moderated CPI inflation, the annual change of Georgia's import prices in September 2021 decreased by 0.7 percent to 20 percent, while the growth of export index remained stable at 13.7 percent, Trend reports via TBC Capital.

According to TBC Capital, these factors could serve as an indication of curbing inflation pressure.

“However, the annual change in producer price index, often used as an earlier predictor of inflation, increased 0.4 percent in September 2021. The advance was even more significant taken into account already high base effect from 2020,” the report said.

The volume of bank credits has increased by 15.8 percent year-on-year in September 2021, the report said.

“Solid growth was maintained in corporate segment, displaying higher than awaited dynamics, while MSME was broadly in-line with expectations,” TBC Capital said.

The non-mortgage credits accelerated in September, in contrast to the estimated gradually reduced consumer boom. This factor, together with stable growth in mortgage credits, brought retail credit above its expected level as well, TBC Capital reports.

However, the annual growth was broadly unchanged on the back of strong rebound in housing finance a year ago.

According to the report, bank lending in Georgian lari has accelerated, while borrowings in foreign currency slowed down, compared to August 2021.


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