The FINANCIAL -- The current account deficit amounted to 428.0 million USD in the first quarter of 2018. The negative balance of goods is the major contributor to the current account deficit.
Trade of goods deficit increased by 18.9 percent annually and amounted to 971.0 million USD (2.4 billion GEL) in the first quarter. Exports increased by 26.5 percent and imports by 22.6 percent annually.
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. Exports of services increased by 19.8 percent and imports by 21.7 percent. The balance of travel services is the largest positive component of the services account. Export of travel services increased by 29.4 percent annually and amounted to 550.8 million USD (1.4 billion GEL).
The positive balance of the current transfers also reduced the current account deficit. Credit of current transfers increased by 13.3 percent annually totaling 371.5 million USD (923.3 billion GEL). Growth was observed for private transfers while, the government transfers declined.
Net foreign direct investments, significant item for financing the current account deficit, amounted to 177.9 million USD (422.2 billion GEL) accounting for 4.8 percent of the first quarter GDP. The largest investment inflows were directed to financial, construction and transport and sectors.