BAKU, Azerbaijan, June 30
By Tamilla Mammadova – Trend:
The current account deficit totaled $417.7 million in the first quarter of 2020 in Georgia, Trend reports referring to National Bank of Georgia (NBG).
The trade of goods and income account make negative contribution to the current account, while services and current transfers - positive. Current account deficit increased by 86.2 percent from -5.9 percent of GDP to -11 percent of GDP.
Balance of goods is the major contributor to the current account. Trade in goods deficit increased by 11.4 percent annually and amounted to $885.9 million in the first quarter. Among them exports decreased by 6.2 percent, while imports increased by 1.2 percent annually.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services decreased by 15.6 percent and imports by 3.1 percent. The balance of travel services is the largest positive component of the services account; however, the export of travel services decreased by 26.1 percent annually and amounted to $427.7 million.
The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers increased by 10.5 percent annually totaling $404.7 million. The private sector transfers increased by 11.7 percent, while the government transfers were negative.
Net foreign direct investments amounted to $125.7 million accounting for 3.3 percent of GDP.
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