Current account deficit reaches its historical minimum in Georgia
BAKU, Azerbaijan, March 27
By Tamilla Mammadova – Trend:
The current account deficit reached its historical minimum in Georgia in 2019, amounting to $897.3 million, 5.1 percent of GDP, Trend reports via National Bank of Georgia.
The current account deficit totaled $538.9 million in the fourth quarter of 2019.
The trade of goods and income account make negative contribution to current account, while services and current transfers - positive. Current account deficit increased by 23.8 percent from 9.5 percent of GDP to 11.1 percent of GDP.
Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 0.5 percent annually and amounted to $1.1 billion in the fourth quarter. Among them exports increased by 17 percent and imports by 8.5 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 8 percent and imports by 11.4 percent. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 5.4 percent annually and amounted to $685.8 million.
The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers increased by 1.1 percent annually totaling $404.3 million, while private transfers increased by 7.7 percent, the government transfers declined from $26.5 million to $0.5 million.
Net foreign direct investments amounted to $225.7 million accounting for 4.6 percent of GDP.
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