Georgian Weekly Digest 7 August 2017

Economy

Georgia’s real GDP growth rate was 4.6% in June 2017 while average real GDP growth in 2Q 2017 was 4.0% and 4.5% in 1H 2017. The rapid estimates for GDP growth are calculated by GeoStat based on VAT numbers, together with fiscal and monetary statistics.

Inflation rate amounted to 6.0% y/y and -0.9% m/m in July 2017 while core inflation (excluding food items and energy products) stood at 4.3% y/y. Annual inflation was well above NBG’s target for 2017 of 4.0%.

The main contributing factors to negative monthly inflation in July were food and non-alcoholic beverages (-0.78ppts, down 2.6% m/m) and transportation (-0.14ppts, down 1.0% m/m).

Annual inflation was mainly driven by food and non-alcoholic beverages (+2.14ppts, up 7.1% y/y), transportation (+1.61ppts, up 12.6% y/y), alcoholic beverages and tobacco (+0.13ppts, up 17.3% y/y) and healthcare (+0.62ppts, up 6.9% y/y).

Total international arrivals were up 28.5% y/y to 982.5 thousand in July 2017, while number of tourists increased 32.9% y/y to 519.3 thousand.

The number of visitors from Russia stood at 219.1 thousand (up 60.4% y/y), followed by Armenia at 209.1 thousand (up 25.4% y/y), Azerbaijan at 190.6 thousand (up 13.8% y/y), Turkey at 141.3 thousand (up 0.6% y/y) and Iran at 44.8 thousand (up 85.8% y/y). Noticeably, arrivals from Saudi Arabia grew 3.5x y/y to 16.9 thousand in July.

 

Debt and Money Market

Eurobonds: during the week Georgia’s Sovereign Eurobond (GEORG 4/21) price was up 0.1% w/w to 111.9 (YTM 3.4%). BGEO Group JSC (BGEOLN 7/23) price was unchanged w/w at 102.3 (YTM 5.5%), Georgian Oil & Gas Corporation (GEOROG 4/21) price was up 0.3% w/w to 105.7 (YTM 5.0%), while Georgian Railway (GRAIL 7/22) price was up 0.1% w/w to 110.0 (YTM 5.4%).

 

Equity Market

On Friday’s trading session, TBC Bank Group PLC (TBCG LN) shares closed at GBP 17.09, up by 5.8% w/w. During the week 207.6 thousand shares traded on the London Stock Exchange.

During the week 309.5 thousand of BGEO Group PLC (BGEO LN) shares traded, closing at GBP 36.15 (up by 5.1% w/w) on Friday’s trading session.

Georgia Healthcare Group PLC (GHG LN) shares were up 0.7% w/w closing at GBP 3.57 on Friday. During the week 71.6 thousand GHG shares changed hands on the LSE.

No trades were recorded on the Georgian Stock Exchange.

 

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