Galt & Taggart releases overview of Georgia’s economic growth, banking sector

Georgia Materials 5 January 2022 11:09 (UTC +04:00)
Galt & Taggart releases overview of Georgia’s economic growth, banking sector

BAKU, Azerbaijan, Jan. 5

By Maryana Akhmedova – Trend:

Georgia’s real GDP growth in November 2021 increased by 12 percent year-on-year, after a 6.9-percent year-on-year growth in October 2021, Trend report via weekly market report from Galt & Taggart.

According to the report, the same index also increased by 3.4 percent, compared to November 2019 level.

Thus, the real GDP growth from January through November 2021 is estimated at 10.7 percent year-on-year, surpassing the same period of 2019 by 3.7 percent, the report said.

Georgia’s economic sectors with GDP growth (November 2021):

- manufacturing;

- transportation and storage;

- arts, entertainment and recreation;

- trade;

- hotels and restaurants;

- financial and insurance activities.

The GDP growth was down in the construction sector, the report said.

Meanwhile, Georgia’s banking sector loan portfolio in November 2021, excluding the foreign exchange effect, increased by 16.4 percent year-on-year (16.1-percent year-on-year growth in October 2021), Galt & Taggart said.

The loan portfolio in November 2021, thereby, amounted to 41.4 billion Georgian lari ($13.4 billion) – an increase of 10.8 percent, compared to 2020 level.

Meanwhile, the bank deposits growth in November 2021 slowed to 11.8 percent year-on-year, compared to 14.2-percent growth in October 2021, and amounted to 35.7 billion Georgian lari ($11.6 billion).

According to the report, Georgia’s current account deficit in the third quarter of 2021 amounted to 7.2 percent of the GDP.

The improvement in the current account balance in the third quarter 2021 was supported by a recovery in service balance (reflecting the gradual increase in tourism revenues of $566 million,which accounts for 50.2 percent of the 2019 level), followed by money transfers (22.7-percent year-on-year increase to $581.4 million, 11.3 percent of the GDP), Galt & Taggart said.

Meanwhile, the trade deficit of goods in the third quarter of 2021, which is traditionally the main reason for creating a deficit, increased by 29.7 percent year-on-year to $1 billion, as exports increased by 23.1 percent year-on-year, and imports – by 25.8 percent year-on-year, the report noted.

Other investments in the amount of $477.9 million (9.3 percent of the GDP) were a key source of financing the current account deficit in the third quarter of 2021, while net foreign direct investments amounted to $216.8 million (4.2 percent of the GDP), the report said.

In general, the current account deficit over first 9 months of 2021 amounted to 9.7 percent of the GDP (12.1-percent share of the GDP over the same period of 2020), Galt & Taggart said.


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