Balance of Payments of Georgia (III Quarter 2014)
Balance of Payments statistic is compiled according to the methodology provided by the IMF's "Balance of Payments Manual, Fifth edition".
The current account deficit in the third quarter of 2014 amounted to 226.9 million USD (395.9 million GEL or 5.3 percent of GDP).
Trade of goods have traditionally contributed to the bulk of the negative current account balance. After improving in 2013, the negative balance of goods has increased again, by 25.2 percent annually and by 4.3 percent quarterly, to equal 1.1 billion USD (1.9 billion GEL). The growth rate of goods exports was negative, equaling -10.1 percent. This was primarily caused by decrease in the export of automobiles, which have been the major export item since 2011. Georgian export was negatively affected furthermore by adverse developments in Ukraine. In contrast, the growth rate of imports of goods increased compared to 2013, growing by 4.9 percent year-on-year and amounting to 2.1 billion USD (3.7 billion GEL).
The positive balance of services partially offsets the negative balance of goods. The balance of services increased by 2.1 percent annually in the third quarter of 2014, to equal 526.5 million USD (918.8 million GEL). The export of services increased by 2.4 percent annually and amounted to 979.7 million USD (1.7 billion GEL), whereas the import of services increased by 2.8 percent annually, equaling 453.2 million USD (791.0 million GEL). Among services, travel had the largest positive balance, rising by 9.4 percent to 565.0 million USD (986.1 million GEL).
The negative balance of income equaled 44.9 million USD (78.4 million GEL). Income credit amounted to 276.2 million USD (482.1 million GEL), up by 17.2 percent annually. Income debit increased by 5.2 percent year-on year, totaling 321.2 million USD (560.5 million GEL).
Current transfers, large positive component of the current account, increased by 4.1 percent year-on year to equal 370.0 million USD (646.3 million GEL). The growth was determined by increase in government as well as private transfers. The inflow of current transfers equaled 405.3 million USD (707.4 million GEL), while the outflow amounted to 35.0 million USD (61.1 million GEL).
Net capital transfer inflows in the third quarter equaled 27.0 million USD (47.2 million GEL).
Net foreign direct investments, significant item for financing the current account deficit, amounted to 434.9 million USD (759.0 million GEL)1 accounting for 10.1 percent of GDP. Direct investments significantly increased in construction, transport and communication, manufacturing and real estate sectors.
Of the total foreign direct investments made to Georgia, 73.9 percent invested in equity capital; 25.7 percent were comprised of reinvested earnings and 0.4 percent by other capital.
The balance of portfolio investments amounted to 5.0 million USD (8.7 million GEL). Transactions were insignificant in assets as well as in liabilities.
The balance of other investments amounted to 44.8 million USD (78.2million GEL). Out of which, assets increased by 110.5 million USD (192.9 million GEL) due to the increase of deposits, loans and trade credits. At the same time, liabilities increased by 155.3 million USD due to increase of loans.
Official reserve assets increased by 260.4 million USD (460.8 million GEL) due to transactional changes and amounted to 2.7 billion USD (4.7 billion GEL), which covers 3.1 months of imports.
The presented statistical information is published on the website of the National Bank of Georgia under the heading "Statistics":
1FDI 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.