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NBG: Current Account Deficit Falls to Historical Bottom

“The current account deficit has seen one of the historical bottoms”, National Bank President Koba Gvenetadze noted. The current account deficit has dropped to 2.9% and this is a serious progress, he said.

“For appraising the 2017 performance, economic experts need indicators of 3 other months. However, we can talk about several important indicators. The current account deficit is one of the important economic indicators, which saw one of the historical bottoms in the third quarter of 2017 – 2.9% of GDP. 

This indicator stood at 8% in 2010, on average, and this is an important progress. If we deduct net interest expenses from this indicator and see the so-called primary current account, this parameter will be proficient one. 

The current account deficit shrank as a result of growth in exports of goods and services (tourism), improved competitive capacity of Georgian economy and economic recovery in our trade partner countries. 

The current account deficit is one of the key indicators that makes positive influence on Georgia’s credit rating and economic growth forecast indicators. Foreign investors also pay much attention to this parameter for appraising macroeconomic environment of the country.

Thus, its low level is of special importance in this respect”, Koba Gvenetadze said.