Page 17 - GEORptDec19

half of 2019—above the 3.0% target set by the National Bank of Georgia, the central bank—reflecting higher prices for food, energy, and imported intermediate goods such as petroleum, along with higher excise taxes on tobacco.
With the Georgian lari depreciating and triggering further price increases, the update significantly raised the inflation forecasts for 2019 and 2020.
It added: “The current account deficit narrowed to the equivalent of 6.2% of GDP in the first quarter of 2019, as higher reexports drove merchandize export growth by 12.8%, and as imports fell by 4.7% with the winding down of energy investment projects.
“A surplus in service trade equalled 10.1% of GDP in the first quarter of the year. With merchandise exports expected to remain robust, this Update projects narrower current account deficits than those published in [the previous forecast from the ADB].”
4.0​ Real Economy 4.1​ Industrial production
Industrial production rises 2.9% y/y in 2Q19
Georgia’s industrial production increased 2.9% y/y in the second quarter of 2019, easing from a 5.4% y/y and 7% y/y in the first quarter of 2019 and fourth quarter of 2018, respectively,​ according to the National Statistics Office of Georgia.
Production expanded at a slower pace for manufacturing ( 3.1% in 2Q19 from 6.1 in 1Q19) and electricity, gas, steam and air conditioning supply (2.7% in 2Q from 6.4% in 1Q). Meanwhile, mining and quarrying production shrank less (-3.5% in 2Q from -4.4%). Conversely, water supply sewerage, waste management and remediation activities rose at a faster rate (13.9% in 2Q19 from 5.3% in 1Q).
Industrial production y/y in Georgia averaged 12.5% from 2000 to 2019.
17​ GEORGIA Country Report​ December 2019 ​ ​www.intellinews.com