TBC Capital published a report from the Chief Economist. According to the repeort, latest trade in goods, tourism and remittances data demonstrate promising dynamics. March exports and imports cooled, though remained at solid levels, broadly as expected with likely higher exports and somewhat stronger adjustment on the imports side possibly indicating to a lower domestic demand. The detailed trade data will be released by GeoStat later this week. Tourism recovery even strengthened supported by the migration effect. As for the remittances, there was even some pickup in growth in April, rather than only a resilience evident in March.
As of the report, despite the continuation of the dramatic developments in Ukraine, the improvement in sentiments regarding Georgia’s and other regional economies was also evident on the international markets as unlike Ukraine, Russia and Belarus, the sovereign risk premium for those countries has further normalized. This likely reflects the perception of lower spillover on the regional economies than initially envisaged.
