27.Mar .2020 19:29

NBG: in 2019 the current account deficit reached its historical minimum

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The National Bank of Georgia (NBG) published a report on current account deficit. According to the report, in 2019 the current account deficit reached its historical minimum, amounting to 897.3 million USD, 5.1 percent of GDP.

The current account deficit totalled 538.9 million USD (1.6 billion GEL) in the fourth quarter of 2019. The trade of goods and income account make negative contribution to current account, while services and current transfers - positive. Current account deficit increased by 23.8 percent from 9.5 percent of GDP to 11.1 percent of GDP.

Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 0.5 percent annually and amounted to 1.1 billion USD (3.3 billion GEL) in the fourth quarter. Among them exports increased by 17.0 percent and imports by 8.5 percent annually.

The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 8.0 percent and imports by 11.4 percent. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 5.4 percent annually and amounted to 685.8 million USD (2.0 billion GEL).

The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers increased by 1.1 percent annually totalling 404.3 million USD (1.2 billion GEL), while private transfers increased by 7.7 percent, the government transfers declined from 26.5 million USD to 0.5 million USD.

Net foreign direct investments amounted to 225.7 million USD (664.9 million GEL) accounting for 4.6 percent of GDP.