Baku, Azerbaijan, September 28
By Tamilla Mammadova – Trend:
The net international investment position (IIP) of Georgia amounted to minus $22.8 billion (minus 65.5 billion lari) as of June 30 2019, accounting for minus 142.1 percent of the last four-quarter GDP, Trend reports with reference to the National Bank of Georgia.
Net IIP improved by $446.7 million in the second quarter of 2019 compared to the previous quarter.
International assets amounted to $10.3 billion (29.6 billion lari) by June 30, 2019, up by $448.9 million quarterly, the report said.
Liabilities increased by $2.2 million during the second quarter totaling $33.1 billion (95.1 billion lari), while the current account deficit amounted to $127.6 million (349.4 million lari).
The trade of goods and income account make negative contribution to current account, while services and current transfers - positive. Current account deficit decreased by 62.6 percent from 8.2 percent of GDP to 3.2 percent of GDP in the second quarter of 2019.
Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 13.7 percent annually and amounted to $879.7 million (2.4 billion lari) in the second quarter.
Among them exports increased by 7.7 percent, while imports decreased by 2.4 percent annually.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 6.1 percent and imports by 9.4 percent.
The balance of travel services is the largest positive component of the services account. Export of travel services increased by 8.4 percent annually and amounted to $877.6 million (2.4 billion lari).
The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers decreased by 3.2 percent annually totaling $373.3 million (1 billion lari). The government transfers declined, while private transfers increased slightly.
Net foreign direct investments amounted to $128.7 million (352.3 million lari) accounting for 3.2 percent of the second quarter's GDP.
(1 USD = 2.95 GEL on September 28)