Current Account Balance (%GDP) in Georgia

Current Account Balance in Georgia

The Current Account Balance (% of GDP) captures the balance of all economic transactions with foreign countries – goods, services, income, and transfers. A negative balance means the country imports more than it exports. Georgia reports a current account deficit of -10% of GDP (2024) – score 26/100 – a structural deficit mitigated by solid external financing sources.

Why Georgia Has a Chronic Current Account Deficit

• Trade deficit: Georgia imports significantly more than it exports – fuels, vehicles, machinery, and consumer goods dominate imports. Exports include wine, mineral water (Borjomi), nuts, ferro-alloys, and re-exports.
• Energy import dependency: Despite hydropower dominance in electricity, Georgia imports natural gas (mainly from Azerbaijan) and petroleum products.
• Small economy structure: 3.7 million people, limited industrial export capacity – a structural characteristic of small open economies.

Offsetting Factors

• Tourism revenues: Over 9 million annual arrivals and ~USD 3 billion in spending; Georgia's largest services export and a natural buffer against the goods trade deficit.
• Remittances: Estimated USD 2.5–3 billion annually from the Georgian diaspora in Russia, the EU, the USA, and Israel.
• Foreign Direct Investment: USD 1.5–2 billion annually in FDI helps finance the deficit.

Conclusion: -10% GDP and score 26/100 reflect a sizeable but manageable structural current account deficit. As long as tourism, remittances, and FDI provide robust counterweights, this deficit represents a managed – not crisis – imbalance. For USD/EUR-earning expats, Lari depreciation pressure from this deficit effectively improves purchasing power over time.

Created: 2026-04-14