Balance of Payments of Georgia (II quarter of 2013)

Balance of Payments of Georgia (II quarter of 2013)

30 September, 2013

From the second half of 2012, unlike the previous years, current account deficit exhibited decreasing trend. Current account deficit amounted to 225.1 million US dollars (5.7 percent of GDP) in the second quarter of 2013, decreasing by 61.4 percent annually.

Exports of goods increased by 106.9 million US dollars (12.1 percent), while imports decreased by 127.3 million US dollars (6.5 percent), as compared to the same quarter of the previous year. As a result, trade deficit declined totaling 848.7 million US dollars (1.4 billion GEL). That is 21.6 percent lower compared to the same quarter of 2012.

Balance of services account was positive equaling 344.0 million US dollars (567.8 million GEL). The export of services amounted to 725.7 million US dollars (1.2 billion GEL), 21.6 percent more than the figure of the same quarter of 2012. Import of services increased by 6.6 percent annually totaling 381.7 million US dollars (629.9 million GEL).

From services, account travel had the largest positive balance (355.1 million US dollars or 586.0 million GEL) increasing by 32.8 annually.

Balance of income was negative equaling 93.2 million US dollars (-153.8 million GEL). Income credit amounted to 217.3 million US dollars (358.7 million GEL), 24.1 percent lower than the figure for the same quarter of 2012. Income debit totaling 310.5 million US dollars (512.5 million GEL) was 7.4 percent lower than the figure of the same quarter of 2012.

Current transfers, the largest positive component of the current account amounted to 372.8 million US dollars (615.2 million GEL). The annual growth of this component was 20.3 percent. Inflow of current transfers equaled 397.7 million US dollars (656.3 million GEL), while outflow made up 24.9 million US dollars (41.1 million GEL). Annual decrease of the net current transfers of public sector was 30.6 percent while other sectors current transfer increased by 25.2 percent.

Net capital transfers inflow equaled 39.3 million US dollars (64.8 million GEL).

Net foreign direct investments amounted to 195.5 million US dollars (322.6 million GEL) in the second quarter of 2013. Foreign direct investment to Georgia made up 232.6 million US dollars (383.9 million GEL), that is 6.9 percent higher as compared to the same quarter of 2012. Out of total foreign direct investments to Georgia 57.7 percent was invested in equity capital; 33.2 - reinvested earnings and 9.2 - other capital.

Balance of portfolio investments amounted to -91.1 million US dollars (-150.3 million GEL). Portfolio investments assets increased by 1.0 million US dollars (1.6 million GEL) while liabilities decreased by 90.1 million US dollars (148.7 million GEL).

Positive balance of other investments amounted to 119.8 million US dollars (197.8 million GEL). Out of that assets decreased by 89.2 million USD (147.3 million GEL) due to decrease of deposits and trade credits. At the same time, liabilities grew up by 30.6 million USD (50.5 million GEL). Out of total liabilities in other investments trade credits and loans increased by 62.6 million USD (103.4 million GEL) and 1.3 million USD (2.1 million GEL) respectively. At the same time deposits decreased by 88.6 million USD (146.3 million GEL).

During the second quarter of 2013 official reserve assets increased by 51.2 million US dollars (84.5 million GEL) due to transactional changes and amounted to 3.0 billion US dollars (4.9 billion GEL), that covers 4.0 months of imports.