Page 6 - GEORptFeb22

There are 14 commercial banks in Georgia, including 13 foreign-owned banks as of January 1, 2022. In December 2021, compared to the previous month, the total assets of Georgian commercial banks (in current prices) increased by GEL1.04bn (1.75%) and constituted GEL60.57bn.
The aggregated net profit of Georgia’s banking system in January-October rose by 38% compared to the same period in 2019, to GEL 1.76bn ($567mn), according to the central bank. In the same period last year, the banks reported GEL85mn net losses, caused by the mandatory provisions set aside for the expected deterioration in the quality of their loans. Since then part of the provisions was released – which contributed to the robust profits in 2021.
The banking system remains adequately capitalised and liquid, according to the IMF. 3Q21 earnings for the two largest banks- TBC and Bank of Georgia - saw robust growth driven by a solid operating performance.
On the trade front, the central bank took note of some positive developments including a 27% annual increase in exports in 2021 to $4.24bn. Overall, in 2021, the trade deficit increased by 24% y/y to $5.83bn compared to 2020, as exports were solid and made the biggest contribution.
Turkey remains one of Georgia’s top trade and economic partners. Earlier statistics from Geostat showed that Turkey was Georgia’s top overall trade partner in 2021, with $1.814bn of total trade.
Georgia’s current account deficit contracted by 35% y/y in the third quarter of 2021 to $371mn, the smallest gap in the past two years, as tourism revenues soared 13 times y/y to $566mn.
Foreign direct investment (FDI) in Georgia reached $299mn in the third quarter of 2021, marking an increase of 1.4% y/y, and a recovery in relative terms from Q1, when FDI was down a whopping 28% y/y.
On the political front, jailed Georgian ex-president Mikheil Saakashvili’s condition is not improving, his doctors say. Saakashvili ended his 50-day hunger strike on November 21 after authorities agreed to move him to a military hospital. The pro-Western politician was arrested after returning to Georgia having lived abroad for years.
6 GEORGIA Country Report February 2022 www.intellinews.com