Current account deficit for the second quarter of 2011 amounted 467.5 million of USD (778.6 millions of GEL). That is 30.1 percentage points increase compared to the preceding quarter.

During the accounting period, as compared to the previous quarter, exports of goods inceased by 174.6 millions of USD  and imports of goods - by 222.3 million of USD. As a result trade balance deficit has increased totaling 733.9 million of USD (1.2 billions of GEL). That is 7.0 percent more than the previous quarter figure and 14.3 percent more as compared to the same quarter of 2010.

Within the reporting period, balance of services account was positive and equaled to 147.4 million of USD (245.4 millions of GEL). The export of services was 462.1 millions of USD (769.6 millions of GEL) and the import of services amounted to 314.7 million of USD (524.2 millions of GEL). The export of services in the second quarter of 2011 was 17.0 percent more than the previous quarter figure and 30.4 percent higher as compared to the figure of the same period of 2010. As for import of services there was 26.0 percent and 19.6 percent increase as compared to the preceding quarter and the second quarter of 2010 respectively.

For services account travel had the most significant positive balance (162.3 million of USD or 270.3 million of GEL). It has increased by 33.3 percentage points compared to the previous quarter and increased by 90.1 percent on a year-over-year basis. The second positive component was transportation services constituting 24.4 million of USD (40.6 millions of GEL). The export of that item has increased by 6.9 percent compared with the previous quarter, and by 16.6 percent compared to the same quarter of 2010. As for imports, it has increased by 23.9 percent in comparison with the preceding quarter, while increase comparing to the second quarter of 2010 amounted to 27.0 percent.

Balance of income was negative equaling 162.9 million of USD (271.2 millions of GEL) in the second quarter of 2011. Income credit has amounted to 124.9 millions of USD (208.1 millions of GEL) that is 16.4 percent more than the same indicator for the previous quarter and 24.2 percent higher than the figure for the same quarter of 2010. Debit of income totaled 287.8 million of USD (479.3 millions of GEL) resulting in 38.7 percentage point and 88.4 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 282.0 million of USD (469.6 millions of GEL) representing 0.1 percent increase compared to the preceding quarter, and 22.1 percent increase compared with the figure of the same period of 2010. Inflow of current transfers equaled 302.0 millions of USD (503.0 millions of GEL), while outflow made up 20.1 million of USD (33.4 millions of GEL). Net current transfers of the public sector in the second quarter of 2011 increased by 77.7 percent while the other sectors’ net current transfers increased by 16.7 percent as compared to the second quarter of 2010.

Inflow of capital transfers in the reporting period equaled to 46.7 million of USD (77.7 millions of GEL). That is 15.1 percent less than the previous quarter figure and 12.2 times higher compared to the same period of 2010. Capital transfers of general government made up 42.2 million of USD (70.3 millions of GEL) that is 15.5 percent less compared to the figures of previous quarter and 18.7 percent more than the same period of 2010 respectively.

Net foreign direct investments amounted to 262.8 million of USD (437.7 millions of GEL) in the second quarter of 2011. While foreign direct investment to Georgia made up 263.9 millions of USD (439.5 millions of GEL), that is 51.9 percent increase as compared to the previous quarter and 26.7 percent increase as compared to the same quarter of 2010. Out of total foreign direct investments to Georgia investment in equity capital amounted to 149.1 million of USD (248.2millions of GEL), reinvested earnings – 111.7 million of USD (186.1 millions of GEL), and other capital - 3.1 million of USD (5.2 millions of GEL).

A positive balance of other investments account amounted to 141.1 million of USD (235.0 millions of GEL) in the reporting period. This item is increased by 71.8 percent compared to the previous quarter figure and by 64.0 percent compared to the figure of the same period in 2010. Assets of other investment have decreased by 139.0 millions of USD (231.5 millions of GEL). At the same time the liabilities have risen by 2.1 millions of USD (3.5 millions of GEL).

Official reserve assets increased by 16.2 million of USD (27.0 millions of GEL) due to operational changes during the second quarter of 2011.