Current account (CA) turned into surplus at 5.9% of GDP in 3Q22, according to the National Bank of Georgia (NBG), this is for the 2nd time on record after a 0.3% of GDP surplus in 3Q18, reads the latest Weekly Market Watch published by Galt & Taggart.
Pursuant to the report, "the positive CA balance was mainly driven by a strong growth in service balance (+3.0x y/y, 17.4% of GDP, supported by a strong recovery in tourism revenues at 122.3% of 3Q19 level), followed by transfers (+54.3% y/y, 13.1% of GDP).
Meanwhile, the merchandize trade deficit, traditionally the major contributor to deficit creation, increased by 15.7% y/y to US$ 1.2bn, as exports were up 50.8% y/y and imports increased by 36.3% y/y. Notably, net FDI increased by 2.4x y/y to US$ 687.2 (10.1% of GDP), while there was a negative balance in portfolio investment at US$ 1.0bn in 3Q22. Overall in 9M22, CA deficit was at a record low level of 2.7% of GDP, down from 10.2% in 9M21."
