07.Apr .2020 18:07

Galt & Taggart: Real GDP growth was 2.2% y/y in February 2020

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Galt & Taggart published weekly market watch. According to the new report, Georgia’s economic growth slowed to 2.2% y/y in February 2020, after 5.1% y/y growth in previous month, according to Geostat’s rapid estimates.

Real growth was recorded in trade, formation & communication, real estate, accommodation & food service activities and financial & insurance sectors. Meanwhile, manufacturing, construction and transportation sectors were in red. Monthly rapid estimates are based on VAT turnover, fiscal and monetary statistics.

Inflation was 6.1% y/y and 0.7% m/m in March 2020.

The annual CPI inflation was 6.1% in March 2020, down from 6.4% in previous month, according to Geostat. Core inflation (non-food, non-energy) was 3.7% in March 2020, while core inflation excluding tobacco stood at 3.3%. Annual price changes were driven by price increases in food and non-alcoholic beverages (+13.4% y/y, +4.18ppts), restaurants & hotels (+8.9% y/y, +0.40ppts), miscellaneous goods & services (+6.8% y/y, +0.36ppts), transport (+3.0% y/y,+0.34ppts) and healthcare (+4.0% y/y, +0.33ppts) categories. On a monthly basis, there was 0.7% inflation in March 2020. Price increases in food and non-alcoholic beverages (+2.0% m/m, +0.63ppts) category was the major driver of monthly Inflation dynamics.