Balance of Payments of Georgia
Balance of Payments Statistics is compiled according to the methodology provided by IMF - "Balance of Payments Manual, Fifth edition".
Current account deficit in the fourth quarter of 2013 amounted to 390.1 million USD (657.6 million GEL) increasing by 5.4 percent annually. The current account deficit accounted for 8.6 percent of the fourth quarter GDP. The current account deficit to GDP ratio of 2013 accounted for 5.9 percent increasing by 5.8 percentage points annually.
Trade of goods traditionally has been the major contributor in formation of negative current account balance. In the fourth quarter balance of goods improved by 7.9 percent annually, while worsened by 17.3 percent quarterly accounting for 1.0 billion USD (2.1 billion GEL). Import of goods accounted for 2.3 billion USD (3.8 billion GEL) growing by 14.3 percent annually. During the year the goods balance improved by 17.2 percent and stood at 3.5 billion USD (5.8 billion GEL).
The positive services balance partially offsets the negative balance of goods. In the fourth quarter it decreased by 13.7 percent annually, due to higher growth of imports compared to exports, equaling 259.3 million USD (437.1 million GEL). The export of services equaled to 698.0 million USD (1.2 billion GEL), increasing by 6.3 percent annually. Import of services increased by 23.3 percent annually (mostly due to transportation services), equaling to 438.6 million USD (739.4 million GEL). Among services travel had the largest positive balance (309.2 million USD or 521.2 million GEL) increasing by 7.3 percent annually. During the 2013 travel services balance increased by 23.5 percent equaling 1.4 billion USD (2.4 billion GEL).
In the fourth quarter balance of income was negative equaling to 15.2 million USD (25.6 million GEL). Income credit amounted to 284.7 million USD (479.8 million GEL), decreasing by 4.9 percent annually. Income debit decreased by 3.7 percent annually totaling 299.8 million USD (505.4 million GEL).
The current transfers, the largest positive component of the current account amounted to 375.5 million USD (632.9 million GEL) decreasing by 14.3 percent. Both the private and the government transfers have declined. The government transfers decreased by 37.4 percent, while other sectors' transfers decreased by 11.7 percent. The inflow of current transfers equaled to 410.6 million USD (692.0 million GEL), while outflow accounted for 35.1 million USD (59.1 million GEL). Annual growth rate of the net current transfers was 4.4 percent making 1.5 billion USD (2.4 billion GEL).
Net capital transfers inflow in the fourth quarter equaled to 37.1 million USD (62.6 million GEL).
Net foreign direct investments, the most significant item for financing the current account deficit, amounted to 161.1 million USD (271.5 million GEL)1 or 3.5 percent of GDP in the fourth quarter of 2013. During the year FDI to GDP ratio increased by 1.7 percentage points making 5.6 percent of GDP. Out of total foreign direct investments to Georgia 63.0 percent invested in equity capital; 24.6 comprised by reinvested earnings and 12.4 by other capital.
The balance of portfolio investments amounted to 163.0 million USD (274.8 million GEL). Portfolio investments' assets decreased by 1.1 million USD (1.8 million GEL) while liabilities increased by 162.0 million USD (273.0 million GEL) due to banking sector's securities.
The negative balance of other investments amounted to -190.5 million USD (-321.1 million GEL). Out of that, assets increased by 326.5 million USD (550.4 million GEL) due to increase of deposits and trade credits. At the same time, liabilities grew by 136.0 million USD (229.3 million GEL) due to loans and deposits. Out of total liabilities in other investments, trade credits increased by 16.4 million USD (27.6 million GEL); loans by 86.2 million USD (145.3 million GEL) and deposits by 34.9 million USD (58.8 million GEL); while other liabilities decreased by 1.4 million USD (2.4 million GEL).
During the fourth quarter of 2013 official reserve assets decreased by 252.7 million USD (426.0 million GEL) due to transactional changes and amounted to 2.8 billion USD (4.7 billion GEL), that covers 3.6 months of imports.
1 FDI data differs from Geostat preliminary statistics. The FDI usually rises after annual survey, due to correction of profit-lose data. BOP statistics is adjusted in order to correct this problem, according to the IMF methodology and recommendations of IMF ROSK mission 2012. After completion of annual survey the final FDI data is released by Geostat and BOP FDI record will adjust according to it.