Page 19 - GEORptFeb19

5.1.2 Current account dynamics
Georgia’s current account deficit narrows marginally in Jan-Sep
Georgia’s current account surplus amounted to $11.9mn (GEL30.1mn) in Q3, 2018, the central bank reported under BPM5 methodology (the surplus was $9.9mn under BPM6).
The trade of goods and income account made a negative contribution, but services and current transfers offset this, the monetary authority noted.
In the whole January-September period, the current account balance produced a $783mn deficit—1% smaller than in the same period of 2017.
The net import of goods widened by 14% y/y to $3bn. The net export of services rose impressively, by 15% y/y to $1.9bn in the three-quarter period, but it barely covered two-thirds of net imports.
The current transfers covered the remaining part of the trade gap: they increased by 11% y/y to over $1bn. Out of this, $639mn (17% up y/y) was formed by wage remittances. The official reserves at the central bank improved by $142mn in the year-to-date period—which, however, translated into a 38% smaller advance compared to the first three quarters of 2017.
Net foreign direct investments in Q3 amounted to $262.5mn accounting for 6.3% of the quarter’s GDP, the central bank said. The largest investment inflows were directed to the manufacturing, energy, transport and real estate sectors.
19 GEORGIA Country Report February 2019 www.intellinews.com