Galt & Taggart notes, that current account was in surplus in 3Q19 Georgia’s current account balance was in surplus of US$ 16.5mn or 0.4% of GDP in 3Q19, according to NBG.
From major components of CA, goods trade deficit reduced 4.8% y/y to US$ 943.7mn (20.5% of GDP), positive balance in services was down 9.5% y/y to US$ 845.7mn (18.4% of GDP), surplus in current transfers amounted to US$ 348.9mn (7.6% of GDP, up 12.7% y/y), and negative income balance decreased 2.7% y/y to US$ 234.5mn (5.1% of GDP). Net FDI, up 16.1% y/y to US$ 356mn (7.7% of GDP) was the major funding category of the CA. Overall, CA deficit more than halved y/y in 9M19 and reached US$ 352mn or 2.7% of GDP.
NPLs at 2.6% in November 2019 In November 2019, the banking sector loan portfolio increased 14.5% y/y after growing 14.0% y/y in previous month, excluding the exchange rate effect. In unadjusted terms, loan portfolio was up 20.2% y/y and up 2.0% m/m to GEL 31.4bn (US$ 10.6bn). Deposits were up 14.5% y/y excluding the exchange rate effect. In unadjusted terms, deposits were up 19.4% y/y and down 0.1% m/m to GEL 26.3bn (US$ 8.8bn). Loan dollarization stood at 55.4% (-1.24ppts y/y and +0.12ppts m/m) and deposit dollarization reached 63.9% (-0.03ppts y/y and +0.04ppts m/m). NPLs stood at 2.6% in November 2019 (-0.27ppts y/y and -0.11ppts m/m).
