OREANDA-NEWS. Balance of Payments statistic is compiled according to the methodology provided by the IMF’s “Balance of Payments Manual, Fifth edition”.

The current account deficit amounted to 395.1 million USD (961.7million GEL or 13.1 percent of the same period GDP) in the first quarter of 2016.

The negative balance of goods is the major contributor to the current account deficit. Trade of goods deficit increased by 1.7 percent annually and amounted to 988.5 million USD (2.4 billion GEL). Exports decreased by 12.4 percent and imports by 4.3 percent annually.  Excluding the granted hepatitis C elimination medicines from imports, the imports of goods annual reduction was 16.6 percent.

The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 3.9 percent, while imports remained virtually unchanged. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 15.7 percent annually and amounted to 354.5 million USD (862.7 million GEL).

The positive balance of the current transfers partially offsets current account deficit. Credit of current transfers increased by 41.8 percent annually totaling 487.7 million USD (1.2 billion GEL). The growth was driven by the government sector transfers that increased 8.5 times annually, mainly due to the international aid received for hepatitis C elimination program (208.1 million USD).

Net foreign direct investments, significant item for financing the current account deficit, amounted to 333.4 million USD (811.4 million GEL)1 accounting for 11.0 percent of the first quarter GDP. The largest investment inflows were directed to transport and communications and financial sector.