OPEX Ratio Alignment & Portfolio Valuation Overview
REAL GDP CONTINUING DOUBLE-DIGIT GROWTH IN 2022
REAL GDP UP 10.5% Y-O-Y IN 1H22
50%
40%
30%
20%
10%
4%
0%
-10%
-20%
-5%
-12%
45%
26%
19%
18.0%
14.6%
12%
10% 10%
10%
7% 7%
NOMINAL GDP IS EXPECTED TO ACCELERATE BOTH IN GEL AND USD TERMS
I Nominal GDP, GEL bln, LHS
Nominal GDP, US$ bln, LHS
75
70
65
60
55
35
30
SOSOSO425022
Billions
11.6%
7.2%
10.6%
2.6%
--GDP per capita, GEL, RHS
GDP per capita, USD, RHS
22
15
10
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021 2022*
Georgia Capital PLC | Source: Geostat, Georgia Capital estimates (*)
Thousands
18
16
14
12
10
4
2006 2006+ N
8
2
GEORGIA
CAPITAL
REAL GDP UP 10.5% Y-O-Y IN 1H22
KEY DRIVERS
Strong external demand supplemented by the migration effect, as
remittance inflows grew by 65% y-o-y in 1H22 on the back of a
surge in inflows from Russia, while merchandise exports increased
by 35% y-o-y in 1H22, and tourism revenues reached 79% of 2019
levels in 1H22, including 92% in May-June;
Continued credit expansion despite the tight monetary stance (up
18.7% y-o-y in June w/o the exchange rate effect) both in retail
and business sectors, aiding economic activity;
➤ Current expenditures growing by 9% y-o-y and capital
expenditures expanding by 4% y-o-y in 1H22, facilitated by a 34%
growth in fiscal revenues;
➤ Strong consumer and business sentiment supporting spending and
investment decisions.
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