Georgia’s current account deficit falls to 3.8% of GDP in Q1 2026

Georgia’s current account deficit narrowed by $274.9 million in the first quarter of 2026, reaching $348.1 million, according to the country’s National Bank. 

The main negative contributions to the current account came from trade in goods and the income balance, while trade in services and current transfers had a positive impact. According to the central bank, the current account deficit amounted to 3.8% of GDP during the first quarter.

Trade in goods remained the largest deficit component, with the negative balance totaling $1.7 billion, down 1.8% compared with the same period last year. Goods exports increased by 23.8%, while imports rose by 11.4%.

Exports of tourism services reached $829.8 million, up 0.5% year-on-year, while computer and information services generated $441.3 million in exports.

The income balance remained negative at $423.2 million. However, net compensation of employees increased by 45.8%, while the negative balance of investment income declined by 12%.

Current transfers continued to be a positive factor for the economy, rising by 7.1% to $937.1 million. Net private-sector transfers increased by 8.5% to $884.4 million.

Net foreign direct investment totaled $160.9 million, equivalent to 1.8% of Georgia’s quarterly GDP.

By Jeyhun Aghazada