Page 24 - GEORptAug19

The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 3.4% and imports by 10.4%. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 5.0% y/y and amounted to $578mn.
The positive balance of the current transfers also reduced the current account deficit. The credit of current transfers decreased by 7.0% totaling $346mn. A significant contribution was made by the smaller profits reported and retained by the foreign direct investment companies: $87mn, some $105mn less than in the first quarter last year.
This had an effect on foreign direct investments as well. Gross foreign direct investments in Georgia decreased by 6.35 y/y to $281mn in the quarter, but equity investments increased by 28% y/y to $159mn. Re-invested earnings were smaller in the quarter, dragging down the headline FDI figure.
5.1.3 Capital flows
Remittances to Georgia up 10.2% y/y in February
The volume of money transfers from abroad to Georgia in February amounted to $125.5mn (GEL332.9mn), equivalent to 10.2% more than was recorded for the same month last year.
Strong wage remittances and rising revenues from tourism are helping to combat the country’s wide current account deficit. It stood at 8% of GDP last year and may stay at that level in 2019, according to IMF projections.
The biggest remittance sums came from Russia ($31.62mn), Italy ($17.44mn) and Greece ($14.16mn), official data showed.
The vast majority (92%) of all money transfers from abroad derived from 15 countries.
24 GEORGIA Country Report August 2019 www.intellinews.com