Balance of Payments of Georgia (II Quarter 2016)
The current account deficit amounted to 486.9 million USD (1.1billion GEL or 13.4 percent of the same period GDP) in the second quarter of 2016.
The negative balance of goods is the major contributor to the current account deficit. Trade of goods deficit more than doubled annually (bulk of the growth came from the imports of the granted hepatitis C elimination medicines) and amounted to 2.2 billion USD (4.9 billion GEL). Exports decreased by 16.8 percent while imports increased by 58.6 percent annually. Excluding the granted hepatitis C elimination medicines from imports, the imports of goods annual reduction was 4.6 percent.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 7.6 percent and imports - by 9.6 percent. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 12.0 percent annually and amounted to 505.3 million USD (1.1 billion GEL).
The positive balance of the current transfers partially offsets current account deficit. Credit of current transfers increased 3.6 times annually totaling 1.6 billion USD (3.5 billion GEL). The growth was driven by the government sector transfers that increased 7.5 times annually, mainly due to the international aid received for hepatitis C elimination program (1.3 billion USD).
Net foreign direct investments, significant item for financing the current account deficit, amounted to 380.6 million USD (842.2 million GEL)1accounting for 10.5 percent of the second quarter GDP. The largest investment inflows were directed to transport, financial and energy sectors.
The presented statistical information is published on the website of the National Bank of
Georgia under the heading "Statistics":
FDI data slightly differs from Geostat's preliminary statistics. FDI data usually rises after the annual survey, due to corrections made to the quarterly profit-loss data. According to the IMF's methodology and the recommendations of the 2012 IMF ROSC mission, BOP quarterly statistic is adjusted in order to correct this problem. After the completion of the annual survey, the final FDI data is released by Geostat and the BOP FDI record is adjusted accordingly.