Current account deficit for the first quarter of 2011 amounted 355.3 million of USD. That is 6.5 percentage points decrease compared to the preceding quarter.

During the accounting period, as compared to the previous quarter, exports of goods deceased by 58.0 millions of USD and imports of goods - by 140.3 million of USD. As a result trade balance deficit has shrunken totaling 683.0 million of USD. That is 10.8 percent less than the previous quarter figure and 34.0 percent more as compared to the first quarter of 2010.

Within the reporting period, balance of services account was positive and equaled to 145.8 million of USD. The export of services was 394.9 millions of USD and the import of services amounted to 249.1 million of USD. The export of services in the first quarter of 2011 was 12.0 percent lower than the previous quarter figure and 29.7 percent higher as compared to the figure of the same period of 2010. As for import of services there was 17.8 percent decrease and 14.7 percent increase as compared to the preceding quarter and the first quarter of 2010 respectively.

For services account travel had the most significant positive balance (121.7 million of USD). It has decreased by 9.4 percentage points (due to seasonality) compared to the previous quarter and increased by 91.8 percent on a year-over-year basis. The second positive component was transportation services constituting 44.3 million of USD. The export of that item has decreased by 3.3 percent compared with the previous quarter, and enlarged by 14.0 percent compared to the same quarter of 2010. As for imports, it has decreased by 17.6 percent in comparison with the preceding quarter, while increase comparing to the first quarter of 2010 amounted to 26.7 percent.
Balance of income was negative equaling 99.4 million of USD in the first quarter of 2011. Income credit has amounted to 107.3 millions of USD that is 5.0 percent less than the same indicator for the previous quarter and 14.0 percent higher than the figure for the same quarter of 2010. Debit of income totaled 206.8 million of USD resulting in 12.4 percentage point and 56.2 percentage point increase on the quarter-on-quarter and year-on-year basis respectively.

Current transfers, the largest positive component of the current account, amounted to 281.3 million of USD representing 9.3 percent decrease compared to the preceding quarter, and 0.6 percent increase compared with the figure of the same period of 2010. Inflow of current transfers equaled 304.4 millions of USD, while outflow made up 23.1 million of USD. Net current transfers of the public sector in the first quarter of 2011 decreased by 55.2 percent while the other sectors’ net current transfers increased by 14.0 percent as compared to the first quarter of 2010.

Inflow of capital transfers in the reporting period equaled to 54.8 million of USD. That is 36.0 percent less than the previous quarter figure and 2.1 times higher compared to the same period of 2010. Capital transfers of general government made up 49.9 million of USD that is 38.4 percent less compared to the figures of previous quarter and 2.1times more than the same period of 2010 respectively.

Net foreign direct investments amounted to 184.8 million of USD in the first quarter of 2011. While foreign direct investment to Georgia made up 173.7 millions of USD, that is 44.7 percent increase as compared to the previous quarter and 2.3 times increase as compared to the same quarter of 2010. Out of total foreign direct investments to Georgia investment in equity capital amounted to 76.5 million of USD, reinvested earnings - 62.9 million of USD, and other capital - 34.2 million of USD.

A positive balance of other investments account amounted to 497.2 million of USD in the reporting period. This item is increased by 51.9 percent compared to the previous quarter figure and 2.5 times compared to the figure of the same period in 2010. Assets of other investment have decreased by 305.6 millions of USD. At the same time the liabilities have risen by 191.6 millions of USD. The rise of liabilities of other investment was the consequence of the growth of loans by general government (42.4 millions of USD) and commercial banks (59.9 million of USD) and increase in deposits. Official reserve assets increased by 407.0 million of USD due to operational changes during the first quarter of 2011. Out of this amount foreign currency reserves increased by 402.3 million of USD.