Galt&Taggart published Weekly Market Watch. According to the documnet, exports increased by 42.9% in November 2021. In November 2021, both exports and imports hit all-time high monthly figure of US$ 430.4mn (up 42.9 y/y and up 23.8% vs. Nov-19) and US$ 1.0bn (up 39.6% y/y and up 23.1% vs Nov-19), respectively. As a result, the trade deficit growth accelerated to 37.3% y/y to US$ 576.9mn (up 22.5% vs. Nov-19), after a 19.8% y/y growth in previous month. The top 5 exported commodities were copper (+60.4% y/y), cars (+51.5% y/y), ferro-alloys (+10.6% y/y), wine (+18.3% y/y) and fertilizers (+610.7% y/y) in Nov-21. A 24.2% of exports were directed to the EU (+37.0% y/y), 48.9% to the CIS (+55.4% y/y) and 26.9% to other countries (+29.0% y/y). The top 5 imports were copper (+33.2% y/y), petroleum (+122.8% y/y), cars (+67.0% y/y), gases (+53.9% y/y) and pharmaceuticals (+28.0% y/y) in Nov-21.
Overall, in 11M21, trade deficit was up 22.9% y/y (up 0.6% vs 11M19) to US$ 5.2bn, as exports increased by 26.7%y/y (up 12.4% vs 11M19), while imports were up by 24.5% y/y (up 5.3% vs 11M19).
The documnet reads, that Georgia’s 3Q21 real GDP growth came in at 9.1% y/y, based on Geostat, revised upwards from the rapid estimate of 9.0%. By sector, strong growth was recorded in trade (+12.3% y/y), art & recreation (+48.1% y/y), electricity & gas supply (+78.8% y/y), financial & insurance (+20.3% y/y), accommodation & food services (+49.8% y/y), transport (+29.0% y/y), healthcare (+23.8% y/y), real estate (+6.6% y/y) and manufacturing (+7.3% y/y). Meanwhile, real growth was down in construction (-29.7% y/y), education (-7.8% y/y), public administration (-3.9% y/y) and agriculture (-2.9% y/y). Cumulatively, growth was 10.5% y/y in 10M21 (down 4.1% y/y in 1Q, up 28.9% y/y in 2Q, up 9.1% y/y in 3Q and up 6.9% y/y in October). This implies that real GDP also exceed its 2019 level by 3.7% in 10M21.
Annual PPI for industrial goods increased by 17.2% in November 2021 down from 17.7% growth in previous month, according to Geostat. Price changes in manufacturing (+20.7% y/y) and electricity, gas, steam and air conditioning (+7.0% y/y) contributed the most to the overall index change in November.
