In 2020 the current account deficit amounted to 2 billion USD (6.1 billion GEL), 12.3% of GDP, the NBG reports.
For comparison, the figure was two times low in 2019 amounting to 891 million USD, 5.1% of GDP.
Thus, the deficit volume increased by $ 1.1 billion last year and it resulted in devaluation of Georgian national currency by 15% last year. A drop of $ 2.7 billion in tourism revenue had the biggest blow on the balance of payments.
Overall inflows were partially offset by a decline in imports as imports fell by 800 million USD last year.
According to the NBG, current account deficit was 13.2% of GDP in Q4, 2020.
“In the fourth quarter of 2020, the current account deficit totaled 560.2 million USD (1.8 billion GEL). The trade of goods and services and income account make negative contribution to current account, while current transfers - positive. In the fourth quarter of 2020 current account deficit decreased by 0.1 percent annually, while current account deficit to GDP increased from 11.9 percent to - 13.2 percent of GDP.
Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 19.8 percent annually and amounted to 887.0 million USD (2.9 billion GEL) in the fourth quarter. Among them exports decreased by 12.4 percent, and imports decreased by 15.7 percent annually.
Net foreign direct investments amounted to 120.0 million USD (392.6 million GEL) accounting for 2.8 percent of GDP”, - the NBG reports.
