BAKU, Azerbaijan, Dec.29
By Tamilla Mammadova – Trend:
Georgian current account deficit totaled $556.7 million (1.7 billion lari) in the third quarter of 2020, Trend reports via the National Bank of Georgia (NBG).
The trade of goods, services, and income account made a negative contribution to the current account, while current transfers made a positive contribution. The current account deficit amounted to 13 percent of GDP.
Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 18.3 percent annually and amounted to $770.5 million (2.4 billion lari) in the third quarter. Among them, exports decreased by 5.7 percent, and imports decreased by 11.1 percent annually.
Net income account was -$215 million (-667 million lari) in the third quarter of 2020. Compensation of employees, a positive component of income has decreased (by 51.1 percent). At the same time negative component of the income account, investment income, reduced by 28.5 percent.
The positive balance of the current transfers reduced the current account deficit. The credit of current transfers increased by 25.6 percent annually totaling $494 million (1.5 billion lari). The private sector transfers increased by 25.6 percent. Government transfers have also increased and amounted to $24 million (74.4 million lari).
Net foreign direct investments amounted to $185.4 million (575.2 million lari) accounting for 4.3 percent of GDP.
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