Current account deficit for the 1st quarter of 2010 declined considerably amounting to 181.2 million of USD. That is 54.2 percentage points decrease as compared to the same quarter of the previous year and 53.7 percent lower as compared with the preceding quarter.

During the accounting period, as compared with the last quarter of 2009 year, exports of goods increased by 14.0 million of USD, while imports of goods decreased by 184.9 million of USD. As a result trade balance deficit has reduced totaling 510.9 million of USD. That is 28.0 percent lower than the previous quarter figure and 15.5 percent less as compared with the 1st quarter of 2009.

Within the reporting period, balance of services account was positive and equaled 87.0 million of USD representing 0.4 percentage point increase as compared to the preceding quarter. From this amount the export of services amounted to 305.4 million of USD, that is 12.6 percent lower than previous quarter figure, but 15.3 percent higher as compared to the analogous period of 2009. As for imports of services, it amounted to 218.0 million of USD. That is 17.0 percent and 3.8 percent decline as compared with the 4th and 1st quarters of 2009 respectively.

For services account the tourism had the most significant positive balance (64.4 million of USD). It has increased by 68.4 percent year-on-year but has decreased by 21.0 percent quarter-on-quarter. The second positive component was transportation services constituting 50.6 million of USD. The export of that item has decreased by 7.0 percent as compared with the previous quarter, while as compared to the same quarter of 2009 it has enlarged by 11.5 percent. As for imports, it has reduced by 18.8 percent in comparison with the preceding quarter, but increased by 1.3 percent as compared to the 1st quarter of 2009.

Balance of income was negative equaling 38.5 million of USD in the 1st quarter of 2010. Income credit has amounted to 94.1 million of USD that is 8.7 percent less than the same indicator for the previous quarter and 0.6 percent higher than the figure for the same quarter of 2009. Debit of income has decreased considerably totaling 132.6 million of USD. That is 34.1 percent decline quarter-on-quarter. On the yearly basis it has increased by 27.6 percent.

Current transfers, the largest positive component of the current account, amounted to 280.9 million of USD representing 14.8 percent decrease as compared to the preceding quarter, but 55.3 percent increase comparing with the same period of the previous year. Inflow of current transfers equaled 297.5 million of USD, while outflow made up 16.6 million of USD. In the 1st quarter of 2010, current transfers of the public sector declined by 32.4 as compared to the preceding quarter, although this figure is 3.2 times higher than it was in the same period of 2009. Analogously, other sectors’ current transfers decreased by 9.2 percent as compared with the previous quarter, but enlarged 1.4 times as compared to the 1st quarter of 2009.

Capital transfers for the 1st quarter of 2010 equaled 26.2 million of USD. That is 62.2 percent lower than the previous quarter figure and 17.6 percent less as compared to the same period of 2009. During the accounting period, capital transfers of the government sector made up 93.6 percent out of total current transfers.

In the 1st quarter of 2010 net foreign direct investments amounted to 75.9 million of USD which is 70.0 percent lower than the previous quarter figure and 41.7 percent less as compared to the analogous period of 2009. All components of inward foreign direct investment (equity, reinvestment and other capital) decreased.

Balance of other investments account amounted to 205.8 million of USD in the reporting period. That is 53.5 percent increase as compared to the previous quarter, but 26.2 percent decline year-on year. During the reporting period, other investment assets decreased by 48.1 million of USD, while liabilities increased by 157.6 million of USD. Such a big increase in other investment liabilities mainly was caused by the making of new loans (166.0 million of USD). More precisely, in the 1st quarter of 2010, the public sector was the only sector in which external indebtedness has deepened (by 234.8 million of USD). On the contrary, foreign loans of the National Bank of Georgia, commercial banks and other sectors decreased by 5.9 million of USD, 49.4 million of USD and 33.5 million of USD respectively.

During the reporting period, reserve assets increased by 138.9 million of USD. From this amount, foreign currency reserve growth equaled 131.9 million of USD (78.3 percent of which comes from an increase in securities).