The FINANCIAL -- The current account deficit in the first quarter of 2015 amounted to 464.8 million USD (963.4 million GEL or 14.1 percent of GDP).
Trade of goods have traditionally contributed to the negative current account balance. The deficit in balance of goods has increased by 14.2 percent annually and amounted to 970.7 million USD (2.0 billion GEL). The growth rate of goods exports was negative, equaling 26.0 percent. Imports of goods also decreased and by 7.3 percent annually and amounted to 1.7 billion USD (3.5 billion GEL).
The positive balance of services (mostly due to exports of travel services) partially offsets the negative balance of goods. The balance of services decreased by 5.3 percent annually in the first quarter of 2015 and amounted to 214.7 million USD (445.0 million GEL). The export of services increased by 0.4 percent annually and equaled to 602.3 million USD (1.2 billion GEL), whereas the import of services increased by 3.8 percent annually, amounting to 387.6 million USD (803.6 million GEL). Among services, travel had the largest positive balance, falling by 3.9 percent to 241.3 million USD (500.2 million GEL), according to NBG.
The balance of income was still negative in the first quarter of 2015 and equaled to 38.7 million USD (80.2 million GEL). Income credit amounted to 221.5 million USD (459.1 million GEL), fall by 2.8 percent annually. Income debit decreased more significantly (by 20.0 percent year-on year) totaling 260.2 million USD (539.3 million GEL).
Current transfers, large positive component of the current account, reduced by 6.9 percent year-on year to equal 329.9 million USD (683.9 million GEL). The decrease was determined by 26.1 percent decline of workers' remittances. The inflow of current transfers equaled 359.1 million USD (744.3 million GEL), while the outflow amounted to 29.1 million USD (60.4 million GEL).
Net capital transfer inflows in the fourth quarter equaled 17.0 million USD (35.3 million GEL).
Net foreign direct investments, significant item for financing the current account deficit, amounted to 117.5 million USD (243.5 million GEL) accounting for 3.6 percent of Georgian GDP. Direct investments inflows went predominantly in transport and communication and construction sectors in the first quarter.
Of the total foreign direct investments made to Georgia, 143.9 million USD (298.2 million GEL) was invested in equity capital; 80.6 million USD (167.0 million GEL)1 were comprised of reinvested earnings and -49.0 million USD (-101.5 million GEL) by other capital.
The negative balance of portfolio investments amounted to 38.4 million USD (79.6 million GEL). The transactions were insignificant both in assets and in liabilities.
The balance of other investments amounted to 175.4 million USD (363.6million GEL). Assets of other investment grow slightly during the first quarter. At the same time, liabilities also increased by 204.8 million USD (by 424.5 million GEL) due to increase of all major subcomponents.
Official reserve assets decreased by 184.8 million USD (383.0 million GEL) due to transactions and amounted to 2.5 billion USD (5.5 billion GEL).