Page 21 - GEORptMar19

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.
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 c alculations 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
21 GEORGIA Country Report March 2019 www.intellinews.com