Bank of Georgia Financial Snapshot and Loan Portfolio Quality slide image

Bank of Georgia Financial Snapshot and Loan Portfolio Quality

Robust economic growth persisted in 1H23, contributing to an improved outlook for the entire year Real GDP y-o-y growth 2011-2022 average 2021 2022 1H23 2023F 2024F 4.7% 10.5% 10.1% 7.6% 6.8% 5.0% 18.0% 10.6% 14.6% 11.6% 11.0% 10.5% 9.7% 9.3% 2.6% 8.8% 8.3% 7.2% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Source: GeoStat, Galt & Taggart Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 7.3% 7.5% 7.7% 8.4% Feb-23 5.8% 7.0% Mar-23 Apr-23 May-23 Jun-23 Key drivers of growth in 1H23: Resilient inflows from exports and tourism: Export of goods increased 14.8% y-o-y (+19.3% in 1H23) Tourism revenues up 34.8% y-o-y (+57.9% in 1H23) Strong investment spending and recovery in consumption on the back of lower inflation Increased activity in the construction, information and communication, and trade sectors Growth outlook: Real GDP growth is expected at 6.8% in 2023 driven by strong external earnings and increased investment expenditure Geopolitical instability in the region and tight global financial conditions pose downside risks to the outlook 5
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