With regard to the real sector, according to preliminary estimates, average growth of real GDP amounted to 6% in Q2 2018. In Q2, average annual inflation totaled 2.4%, which is lower than the National Bank target (3%).
Concerning the fiscal sector, in Q2 2018, consolidated budget revenues increased by 8.5% YoY, while expenses and acquisition of non-financial assets rose by 0.2%. As of Q2, public debt in nominal terms increased by 8.4% YoY. Domestic debt grew by 6.7% YoY, while external debt – by 8.8%.
As for the external sector dynamics, in Q2 2018, external trade of goods was 25% higher YoY, including a 30% increase in exports and a 23% increase in imports. A positive trend has emerged since Q4 2016 – the growth rate of exports remains high and, in the 2nd quarter, exports reached one of the highest values compared to the respective period of previous years. In Q2, total international reserves also grew by 1.6% YoY and reached USD 3,005 million. In the 2nd quarter, the exchange rate of GEL (period average) against USD rose by 1.6% QoQ, but fell by 1.1% YoY.
In the matter of the monetary sector, in Q2 2018, market interest rates on loans fell by 1 pp QoQ and reached 12.6%. In the 2nd quarter, commercial bank loans increased by 19.9% YoY, while deposits in USD made up 61% of the total.
Out of social and labor market indicators, in Q1 2018, the number of business sector employees increased by 32,000 YoY and reached 637,000. In Q2 2018, expenditure on education increased by 37% YoY and totaled GEL 413 million, while healthcare expenses rose by 2.5%, reaching GEL 266 million.