Page 20 - GEORptFeb19

5.1.3 Capital flows
12-month net remittance to Georgia 20% up y/y to $1.3bn in Aug
Net money transfers from abroad to Georgian households (largely wage transfers) in the 12 month-period ending August increased by nearly 20% y/y to $1.30bn according to bne Intellinews calculations based on central bank data.
Gross inflows were up 19% y/y to $1.53bn, equivalent to roughly 10% of the country’s GDP. Wage remittances finance the largest part of the current account gap that exceeded 10% of GDP last year and remains a key problem this year as well.
Georgia’s GDP is set to rise from some $15bn in 2017 to $16bn this year.
Of the $1.53bn gross transfers in the rolling 12 months, $463mn (up 5.7% y/y) were transfers from Russia. Gross transfers from other countries surged by 25% y/y to $1.07bn. Since January 2015, transfers from countries other than Russia exceeded remittances from Russia.
In August alone, the volume of money transfers from abroad to Georgia rose by 11.4% y/y to $135.6mn. In the same month, $18.9mn (down 2.5% y/y) was transferred out of the country.
5.1.4 Gross international reserves
Gross international reserves in Georgia amounted to USD3,289.82mn in December 2018, up from USD3,152.59mn in September, according to the National Bank of Georgia. Of which, foreign currency reserves made up the majority at USD3,089.07mn in December.
20 GEORGIA Country Report February 2019 www.intellinews.com