Page 27 - GEORptFeb20

according to data released by Georgia’s central bank, the National Bank of Georgia (NBG). Their annualised return on assets (ROA) exceeded 2%, based on the data released on November 7. The lenders account for more than two-thirds of total banking sector assets in the small country, and hold similar shares when it comes to income and net profit.
On the downside, the same amount of “reinvested earnings” will be visible in the current account data to be released by the central bank at a later date. They will be recorded as outflows adding to the already chronic goods trade deficit. The external balance figures will be particularly monitored by investors given tense sentiment on the foreign exchange market.
In the whole Jan-Sept period, the volume of reinvested earnings in Georgia increased by only 5.5% y/y to $436mn.
The inflow of equity, namely new capital injected by foreign investors in new projects or already existing FDI companies in Georgia, decreased by 45% y/y to $119mn in Q3 and by 47% y/y to $340mn in Jan-Sept.
6.0​ Public Sector 6.1​ Budget
Georgian sketches 2020 budget envisaging 2.7% of GDP deficit
Georgia’s government has sketched its 2020 budget planning based on assumptions of 5% GDP growth next year and the targeting of a deficit of 2.7%-of-GDP in line with this year’s target, Business Media ​reported​, citing finance minister Ivane Machavariani.
The public debt to GDP ratio would under the given scenario reach 45%. Budget expenditures are planned at GEL16bn in 2020. Current expenditure would be GEL11bn , infrastructure expenditure would be GEL3.7bn and debt repayment costs would be GEL1bn, according to the broad distribution of expenditures.
GDP is expected to reach GEL48.5bn, or $16.3bn, on an estimated average
27​ GEORGIA Country Report​ February 2020 ​ ​www.intellinews.com