Page 17 - GEORptMay18

segment, which has the largest slice of the overall industrial sector in Georgia and pushed the PPI up by 4.48 percentage points (pp).
With manufacturing, the sub-sector of food products, beverages and tobacco made the largest contribution, of 2pp. Basic metals and fabricated metal products, while accounting for a smaller share of total manufacturing output, expanded by an impressive 11.8%, contributing 1.72pp to the overall increase. Prices in the electrical energy, gas, steam and hot water sector expanded more rapidly than manufacturing – by 12.1% y/y – contributing 1.67pp to the overall rise in PPI.
Likewise, mining and quarrying output, though up a solid 9.5%, contributed a more modest 0.4pp to the PPI increase.
In monthly terms, the decline in overall PPI followed price declines in all three major sectors – manufacturing; electrical energy, gas, steam and hot water; and mining and quarrying.
4.3 Fixed investment
Georgia -Fixed capital investment 2011 2012 2013 2014 2015 2016 2017
Gross fixed investment capital formation (GEL mn)
6,368.0 7,575.4 6,652.9 8,688.8 10,004.3 10,999.8 11,238.3
Gross fixed capital formation (% of GDP)
22.5% 24.8% 21.9% 25.8% 28.4% 30.4% 30.3%
Source: CEIC
EBRD, EU provide €1.15bn to support SMEs in Georgia, Moldova and Ukraine
IMF disburses $42.2mn tranche to Georgia following review
The European Bank for Reconstruction and Development (EBRD) and the European Union are extending their support to small and medium-sized enterprises (SMEs) in Georgia, Moldova and Ukraine, with a total of almost €1.1bn in credit lines and trade finance and €58.3mn in EU grants, the EBRD announced on March 22.
The EU4Business-EBRD credit line has allowed SMEs in sectors such as manufacturing, retail, agriculture and food processing, transport, services and healthcare to improve their products, strengthen their export potential and adopt EU standards and technical norms, she explained. The combination of EBRD finance and EU grants has proven to be a perfect match to the needs of Georgian companies. It will assist local SMEs in reaping the benefits associated with their countries’ free trade agreements with the EU, the world’s largest trading block.
The International Monetary Fund (IMF) announced on November 6 that it had approved a $42.2mn tranche disbursement to Georgia as part of a three-year, $297.5mn programme.
Georgia and the IMF commenced the programme in April; inclusive of the last tranche, so far the IMF has disbursed $80mn to the South Caucasus country. According to the latest IMF review, economic growth in Georgia is gaining momentum, inflation is projected to decline in 2018 and the country's external position has strengthened.
17 GEORGIA Country Report May 2018 www.intellinews.com