Real GDP grew 4.6% y/y in June 2017
Georgia’s economy expanded 4.6% y/y in June 2017, after growing 5.3% y/y in previous month, according to GeoStat’s rapid estimates. Overall, in 1H17 GDP growth was 4.5% y/y. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.
Tourist arrivals up 32.9% y/y in July 2017
Total international arrivals to Georgia increased 28.6% y/y to 0.98mn visitors in July 2017, according to the Ministry of Internal Affairs. Arrival growth was mainly driven by surge in tourist arrivals increasing 32.9% y/y to 0.52mn persons (52.9% of total) in July after posting a 43.0% y/y growth in June 2017. Out of top countries by arrivals, in July 2017, visitors continued to increase strongly from Armenia (+25.4% y/y), Russia (+60.4% y/y), Iran (+85.8% y/y), Azerbaijan (+13.8% y/y), and Ukraine (+16.3% y/y). Arrivals from EU were up 21.4% y/y to over 45,500 visitors. In 7M17 international arrivals increased 16.8% y/y to 4.0mn visitors, while tourist arrivals increased 30.2% y/y to 1.8mn.
Inflation was up 6.0% y/y and down 0.9% m/m in July 2017
The annual CPI inflation retreated to 6.0% in July 2017 from 7.1% inflation in previous month, according to GeoStat. Core inflation was 4.3% in July, down from 4.5% in previous month. Overall price changes were driven by price increases in food and non-alcoholic beverages (+7.1% y/y, +2.14ppts), transport (+12.6% y/y, +1.61ppts), and alcoholic beverages and tobacco (+17.3% y/y, +1.13ppts) categories. On a monthly basis, there was 0.9% deflation in July 2017. Price decrease in food and non-alcoholic beverages (-2.6% m/m, -0.78ppts) and transport (-1.0% m/m, -0.14ppts) categories were the major drivers of monthly Inflation dynamics.