Balance of Payments of Georgia (IV 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 fourth quarter of 2014 amounted to 625.9 million USD (1.1 billion GEL or 13.8 percent of GDP).
Trade of goods have traditionally contributed to the negative current account balance. After improving in 2013, the deficit in balance of goods has increased again, by 25.0 percent annually and amounted to 1.3 billion USD (2.3 billion GEL). The growth rate of goods exports was negative, equaling 20.0 percent. Georgian export was negatively affected by adverse developments in the region. On the other hand, imports of goods did not change compared to 2013 figure, amounting to 2.3 billion USD (4.1 billion GEL). As a result of decreased exports and unchanged imports the trade balance deteriorated significantly (by 25.0 percent) compared to 2013.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. The balance of services decreased by 5.4 percent annually in the fourth quarter of 2014 and amounted to 244.0 million USD (440.1 million GEL). The export of services decreased by 0.4 percent annually and equaled to 693.0 million USD (1.2 billion GEL), whereas the import of services increased by 2.5 percent annually, amounting to 449.0 million USD (809.8 million GEL). Among services, travel had the largest positive balance, rising by 1.4 percent to 313.6 million USD (565.7 million GEL).
The balance of income was positive in the fourth quarter of 2014 and equaled to 52.9 million USD (95.4 million GEL). It was conditioned by decrease of debit of investment income (mainly due to direct investment debit). Income credit amounted to 259.8 million USD (468.6 million GEL), fall by 8.2 percent annually. Income debit decreased significantly (by 39.8 percent year-on year) totaling 206.9 million USD (373.2 million GEL).
Current transfers, large positive component of the current account, reduced by 9.6 percent year-on year to equal 339.9 million USD (613.1 million GEL). The decrease was determined by 15.1 percent decline of workers' remittances. The inflow of current transfers equaled 377.1 million USD (680.2 million GEL), while the outflow amounted to 37.2 million USD (67.1 million GEL).
Net capital transfer inflows in the fourth quarter equaled 44.8 million USD (80.7 million GEL).
Net foreign direct investments, significant item for financing the current account deficit, amounted to 288.7 million USD (520.7 million GEL)1 accounting for 6.4 percent of Georgian GDP. Direct
investments inflows went predominantly in transport and communication, construction and financial sectors in the fourth quarter.
Of the total foreign direct investments made to Georgia, 75.1 percent invested in equity capital; 5.9 percent were comprised of reinvested earnings and 19.0 percent by other capital.
The balance of portfolio investments amounted to 14.8 million USD (26.6 million GEL). The transactions were insignificant both in assets and in liabilities.
The balance of other investments amounted to 333.9 million USD (602.2million GEL). Assets of other investment declined slightly during the fourth quarter. At the same time, liabilities increased by 326.7 million USD (by 589.3 million GEL) due to increase of all major subcomponents.
Official reserve assets increased by 34.9 million USD (62.9 million GEL) due to transactions and amounted to 2.7 billion USD (5.0 billion GEL), which covers 3.3 months of imports.
The presented statistical information is publishedon the website of the National Bank of Georgiaunder the heading "Statistics": https://www.nbg.gov.ge/index.php?m=304