Azerbaijani gas reaches 100% capacity in the western direction

According to the results of 2022, the plan is to transport a total of 16.2 billion cubic meters of Azerbaijani gas through the Trans-Anatolian pipeline (TANAP). This was announced on February 23, by TANAP Director-General Saltuk Duzyol, answering a question from Trend news agency during an online press conference.

From the start of commissioning until the end of January 2022, the Trans-Anatolian pipeline transported 14.5 billion cubic meters of gas to Turkey and 9 billion cubic meters to Europe.

TANAP is currently using almost 100% of its capacity and in transporting gas to Turkey. The pipeline has already come close to the declared supply volume (6 billion cubic meters), exporting 5.7 billion cubic meters per year.

On December 31, 2020, supplies of Azerbaijani gas to Europe through the Southern Gas Corridor began. For the first time in history, Azerbaijan exported its natural gas to the European market vai pipelines running through Turkey. With direct access to the European market, which is the world's largest importer of natural gas, Azerbaijan has diversified its export opportunities, local media reported.

Azerbaijan has sufficient reserves to increase gas supplies to Europe, but the increase in blue fuel exports should be preceded by specific applications from consumers on the continent. This was announced earlier this month by Deputy Minister of Energy of the Republic Elnur Soltanov.

Georgian commercial banks reported increase in net profit in January

In the first month of this year, Georgia's commercial banking industry reported a net profit of $72.1 million, up from 35.3 million dollars in January 2021 and 35.5 million dollars in December last year.

Total income was 162.4 million dollars, up from 141.3 million dollars a year before, according to the country's national bank. Banks cut their expenditures from 101.4 million dollars to 86.2 million dollars.

Last year, Georgian banks made progress, reporting profits that more than compensated for losses experienced a year earlier, when restrictions to limit the spread of the COVID-19 were initially implemented, devastating the country's tourist-dependent economy. In 2021, commercial banks made a total net profit of 649 million dollars, up from 30 million dollars in 2020. Only in November 2020 did the banking sector generate a profit.

Georgia's tourism-dependent economy has been particularly impacted by the COVID crisis, and it lacks the resource extraction or manufacturing basis that has helped other ex-Soviet republics weather the storm.

The country began its economic recovery in April of last year, with a year-on-year growth rate of 44.8%. The country's economic recovery accelerated as it lifted the bulk of the limitations it had set to combat the coronavirus outbreak, albeit growth had been declining since April.

In August, the nation imposed various limits in response to an increase in the number of illnesses and deaths.

Georgia's gross domestic product (GDP) increased by 10.6% in 2021 after falling by 6.1% the previous year. The economy grew by 9.6% in December, compared to a 7.9% drop a year before and a 12% increase in November. Except for construction, all sectors of the economy grew.

Fitch Ratings maintained Georgia's long-term foreign-currency Issuer Default Rating (IDR) at 'BB' with a Stable outlook earlier.

Domestic demand, robust net remittance inflows, a partial tourist rebound, and fiscal support, according to Fitch, have fuelled the economic recovery (e.g. subsidies and social benefits). Due to the recovery of important trading partners and stronger commodity prices, growth in goods exports also performed well.

Fitch expects Georgia's GDP to grow by 5.5% in 2022 and 5.3% in 2023, respectively, above the potential of 4.0-4.5%. Private consumption and investment will benefit from increased financial inflows. The recovery in the tourist industry is expected to accelerate, with Fitch projecting tourism receipts to reach 80% of 2019 levels in 2022, up from 38.1% in 2021.

Georgia's economy is likely to grow by 5.5% in 2022, according to the World Bank's latest prediction, as the "economy is projected to relax toward its potential growth rate in 2022 and 2023 under tighter fiscal policies."

Georgia's banking industry, which consists of 14 commercial banks, 14 of which have foreign capital, began to show signs of recovery at the beginning of last year, when some of the pandemic's restrictions were removed.