Balance Of Payments Of Georgia (II Quarter 2018)

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The FINANCIAL — The current account deficit amounted to 368.5 million USD (901.4 million GEL or 8.9 percent of the same period GDP) in the second quarter of 2018.

The negative balance of goods is the major contributor to the current account deficit. Trade of goods deficit increased by 20.6 percent annually and amounted to 1.0 billion USD (2.5 billion GEL) in the second quarter. Exports increased by 28.2 percent and imports by 24.5 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 19.6 percent and imports by 18.5 percent. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 28.6 percent annually and amounted to 810.0 million USD (2.0 billion GEL).

The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers increased by 10.0 percent annually totaling 383.2 million USD (937.2 million GEL). Growth was observed for private transfers while, the government transfers declined.

Net foreign direct investments, significant item for financing the current account deficit, amounted to 277.2 million USD (677.9 million GEL) accounting for 6.7 percent of the second quarter GDP. The largest investment inflows were directed to energy, transport and financial sectors.

 

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