Current account of Georgia reaches over $16M

Business Materials 27 December 2019 18:11 (UTC +04:00)
Current account of Georgia reaches over $16M

BAKU, Azerbaijan, December 27

By Tamilla Mammadova – Trend:

The current account of Georgia was positive equaling $16.5 million in the third quarter of 2019, Trend reports citing National Bank of Georgia (NBG).

As reported, the trade of goods and income account make negative contribution to current account, while services and current transfers - positive. Current account surplus increased by 34.8 percent from 0.3 percent of GDP to 0.4 percent of GDP.

Deficit of trade of goods decreased by 4.8 percent annually and amounted to $943.7 million in the third quarter. Meanwhile, exports increased by 10.8 percent and imports increased by 3.5 percent annually.

The positive balance of services (mostly due to exports of travel services) essentially offset the negative balance of goods. Exports of services decreased by 4.6 percent while imports increased by 2.7 percent.

The balance of travel services is the largest positive component of the services account. Export of travel services decreased by 6.9 percent annually and amounted to $1.1 billion.

The current transfers also make positive contribution to the current account. Credit of current transfers increased by 13.5 percent annually totaling $392.3 million.

The net private transfers increased by 14.6 percent, while the net government transfers declined, like the previous year was negative (-$9.6 million).

Net foreign direct investments amounted to $356.4 million accounting for 7.7 percent of the third quarter's GDP.


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