30.Dec .2020 11:00

Current account deficit amounted to 13.0% of GDP - The NBG

Current account deficit amounted to 13.0% of GDP - The NBG
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The current account deficit totaled 556.7 million USD (1.7 billion GEL) in the third quarter of 2020. The trade of goods, services and income account made negative contribution to current account, while current transfers made positive contribution. The current account deficit amounted to 13.0% of GDP.

Balance of goods is the major contributor to the current account. Trade of goods deficit decreased by 18.3 percent annually and amounted to 770.5 million USD (2.4 billion GEL) in the third quarter. Among them exports decreased by 5.7 percent, and imports decreased by 11.1 percent annually.

Net income account was -215.0 million USD (-667.0 million GEL) in the third quarter 2020. Compensation of employees, a positive component of income has decreased (by 51.1%). At the same time negative component of the income account, investment income, reduced by 28.5%.

The positive balance of the current transfers reduced the current account deficit. Credit of current transfers increased by 25.6 percent annually totaling 494.0 million USD (1.5 billion GEL). The private sector transfers increased by 25.6 percent. Government transfers has also increased and amounted to 24.0 million USD (74.4 million GEL).

Net foreign direct investments amounted to 185.4 million USD (575.2 million GEL) accounting for 4.3 percent of GDP.