Page 23 - GEORptAug18

5.1.2 Current account dynamics
Georgia’s current account deficit at 12.9% in Q4 2017
Georgia's current account deficit accounted for 12.9% of the country’s nominal GDP in December 2017, down from 17.3% a year earlier but up from 3.1% in the previous quarter, CEIC data reported. In nominal terms, the deficit contracted by 19.9% y/y to $524.9mn.
The small country's economy is reliant on imports of oil and gas and added-value goods like machinery, therefore a high trade deficit financed partly through borrowing and investments continues to be a problem for Tbilisi, even as its economy has flourished. The main contributor to the decline in the deficit was services, largely thanks to tourism revenue growth.
5.1.3 Capital flows
Georgia reports 13% y/y increase in remittance inflows in May
A total of $130.4mn worth of money transfers from abroad were sent to Georgia in May 2018, 13% more than in May 2017, data from the National Bank of Georgia showed.
EU countries accounted for the largest share of the total, $44.3mn, outstripping the $37.84mn sent from Russia during the month, though Russia remained by far the single largest source of money.
Within the EU, the largest sums were sent back from Italy ($11.68mn) and Greece ($11.71mn). Also among the top five countries from which Georgians sent home money were the US ($12.11mn) and Turkey ($10.02mn).
23 GEORGIA Country Report August 2018 www.intellinews.com