Balance of payments of Georgia
07 July, 2011
Balance of payments of Georgia

Current account deficit for the first quarter of 2011 amounted to USD 355.3 million, translating in  6.5 percent decrease compared to the preceding quarter, National Bank of Georgia informed on July 1, 2011.


During the accounting period, as compared to the previous quarter, exports  and imports of goods decreased by USD 58 million  and USD 140.3 million respectively. As a result, trade balance deficit has shrunk, totaling USD 683 million, which is 10.8% less than the previous quarter figure and 34%

more as compared to the first quarter of 2010.

Balance of services account was positive and equaled to USD 145.8 million within the reported period. The export of services totaled USD 94.9 million and the import of services amounted to USD 249.1 million. The export of services in the first quarter of 2011 was by12% lower than the previous quarter figure and by 29.7% higher as compared to the figure of the same period of 2010. As for import of services there was 17.8% decrease and 14.7% increase as compared to the preceding quarter and the first quarter of 2010 respectively.

For services account travel had the most significant positive balance making USD 121.7 million.  It has decreased by 9.4 percentage points (due to seasonality) compared to the previous quarter and increased by 91.8% on a year-over-year basis. The second positive component was transportation services constituting USD 44.3 million. The export of that item has decreased by 3.3% compared with the previous quarter, and enlarged by 14% compared to the same quarter of 2010.  Meantime the import has decreased by 17.6% in comparison with the preceding quarter; however it increased by 26.7% comparing to the first quarter of 2010.

Balance of income was negative equaling USD 99.4 million in the first quarter of 2011. Income credit has amounted to USD 107.3 million that is 5% less than the same indicator for the previous quarter and 14% higher than the figure for the same quarter of 2010. Debit of income totaled USD 206.8 million resulting in 12.4 percentage point and 56.2 percentage point increase on the quarter-on-quarter and year-on-year basis respectively.

Current transfers [the largest positive component of the current account] amounted to USD 281.3 million representing 9.3% decrease compared to the preceding quarter, and 0.6% increase compared with the figure of the same period of 2010. Inflow of current transfers equaled USD 304.4 million while outflow made up USD 23.1 million. Net current transfers of the public sector in the first quarter of 2011 decreased by 55.2%. On the other hand the other sectors’ net current transfers increased by 14% compared to the first quarter of 2010.

Inflow of capital transfers in the reported period equaled to USD 54.8 million that translates into 36% drop compared to the previous quarter figure but is 2.1 times higher compared to the same period of 2010. Capital transfers of general government made up USD 49.9 million that makes a 38.4% decrease compared to the figures of previous quarter and by 2.1times exceeds the similar period of 2010 respectively.

Net foreign direct investments amounted to USD 184.8 million in the first quarter of 2011. While foreign direct investment to Georgia made up USD 173.7 millions that makes 44.7% increase as compared to the previous quarter and by 2.3 times exceeds the same quarter of 2010. Out of total foreign direct investments to Georgia investment in equity capital amounted to USD 76.5 million, reinvested earnings – USD 62.9 million, and other capital – USD 34.2 million.

A positive balance of other investments account amounted to USD 497.2 million in the reporting period. This item is increased by 51.9% compared to the previous quarter figure and is up by 2.5 times compared to the figure of the same period in 2010. Assets of other investment have decreased by USD 305.6 millions. At the same time the liabilities have risen by USD 191.6 millions. The rise of liabilities of other investment was the consequence of the growth of loans by general government (USD 42.4 million) and commercial banks (USD 59.9 million) and increase in deposits. Official reserve assets increased by USD 407 million due to operational changes during the first quarter of 2011. Out of this amount foreign currency reserves increased by USD 402.3 million.

Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28