Georgia reveals current account deficit
BAKU, Azerbaijan, Sept.29
By Tamilla Mammadova – Trend:
The current account deficit of Georgia totaled $337.1 million in the second quarter of 2020, Trend reports via the National Bank of Georgia.
The trade of goods and income account make negative contribution to current account, while services and current transfers - positive. Current account deficit increased by 97.3 percent from -3.9 percent of GDP to -9.4 percent of GDP.
Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 39.8 percent annually and amounted to $530.1 million in the second quarter.
Among them, the exports decreased by 23.4 percent, and imports decreased by 30.3 percent, on an annual basis.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services decreased by 77.7 percent and imports by 58 percent. The balance of travel services was the largest positive component of the services account. Export of travel services decreased by 96.7 percent annually and amounted to $28.8 million.
The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers decreased by 3.6 percent annually totaling $361 million. The private sector transfers decreased by 1.4 percent, while the government transfers have increased.
Net foreign direct investments amounted to $148.9 million accounting for 4.2 percent of GDP.