Daily News

IN THIS ISSUE:

Ekaterina Mikabadze, Georgia’s First Deputy Minister of Economy and Sustainable Development, declared that Georgian export in 2019 increased in comparison with the previous year by 12.4% and reached $3.8 billion. The Deputy Minister noted that high growth is recorded in December when export grew by 18.7% in annual basis and reached $390.4 million.

Georgian Civil Aviation Agency reported that volume of freights, transported in 2019 via airports of the country, totaled to 24,911.34 t. If compared with 2018, freight turnover has reduced by 2.14% (by 543.49 t).

We see health expenditure growth potential in public sector in Georgia, Evex Hospitals indicates in its prospectus. The company sees also expansion of private insurance industry in the country.

In recent years, ratio of Georgian companies’ debt to GDP of the country remained close to a long-term trend, National Bank of Georgia (NBG) said. That indicates stability of growth of a debt in corporate sector, NBG noted.

National Bank of Georgia (NBG) declared that reduction of share of idle credits in total corporate crediting indicates mitigation of credit risk in corporate sector of the country.

Despite this, share of idle credits remains high in cyclic sectors, such as construction, operations with real estate and trade, NBG noted.

National Bank of Georgia (NBG) said that Georgian companies remain exposed to exchange rate risk. Share of funds, attracted by them in foreign currency, is high, while hedging opportunities are limited, NBG pointed.

In spite of difficulty of studying prices on Georgian real estate market, we have no bases to assume on the basis of existing data that there is a so-called “price bubble” on the country’s real estate market, National Bank of Georgia (NBG) declares.

According to NBG, risks of formation of a “price bubble” on the real estate market are low, as ratio of apartment price to rent cost is close currently to a long-term mean showing.

By existing estimations, share of shadow banking activity in Georgia is low, but growing, National Bank of Georgia (NBG) points.

In the financial stability report, published the end of 2019, NBG says that risks, caused by shadow sector, are not considerable in the current period.