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Georgian Weekly Market Watch Prepared by Galt & Taggart

Georgian Weekly Market Watch Prepared by Galt & Taggart

On the Galt & Taggart website, the weekly overview of Georgian market was published.

FDI up 103.2% y/y in 1Q16

FDI in Georgia hit US$ 376mn (+103.2% y/y) in 1Q16, according to GeoStat’s preliminary figures. Similar to previous quarters, the transport and communications sector was the largest FDI recipient at US$ 200mn (+37.0% y/y, 53.2% of total) in 1Q, followed by financial sector at US$ 58mn (15.4% of total), and construction sector at US$ 40mn (+90.5% y/y, 10.6% of total). Azerbaijan topped the list of investors with US$ 137mn, followed by Turkey at US$ 57mn, and United Kingdom at US$ 44mn.

International reserves up 7.4% y/y in May 2016
Gross international reserves increased 7.4% y/y (+US$ 175.9mn) to US$ 2.6bn as of end-May 2016, according to NBG. Reserves were up 4.6% m/m (+US$ 112.6mn). The growth was attributed to NBG’s FX interventions with a US$ 140mn purchase in May.

NBG buys US$ 63mn
Last week, NBG intervened on the FX market 2 times and purchased US$ 63mn, aimed at curbing the appreciation of the national currency. Overall, NBG bought total of US$ 258mn at 13 interventions during March 17 – June 9. GEL strengthened 0.6% w/w and 11.2% YTD against US$.

Property registration up 11.6% y/y in May 2016
Property registration (commercial and residential real estate) increased 11.6% y/y (-16.4% m/m), reaching 46,707 units in May 2016, according to the National Agency of Public Registry. Registration increased for primary (+19.9% y/y, 20.2% of total), as well as secondary (+9.6% y/y, 79.8% of total) properties.

Company registration up 2.0% y/y in May 2016
In May 2016, company registration increased 2.0% y/y (-6.5% m/m) to 3,816 units, according to the National Agency of Public Registry. Out of newly registered companies, 96.2% were business legal entities, while 3.8% comprised non-entrepreneurial (non-commercial) legal entities.

Georgia hosts Cbonds-Congress on June 16-17, 2016
Georgia will host 13th CIS, Baltic States and Caucasus Bond Congress for the first time on June 16-17, 2016, which has previously been held in various locations throughout Europe. The congress participants are gathering to discuss the most acute issues related to fixed income markets in emerging countries. Galt & Taggart, which plays a key role in developing of Georgian debt capital market, is general partner of the congress.

Source: Galt & Taggart