Georgia halves current account deficit in H1

TBILISI. Oct 2 (Interfax) - Georgia halved its current account deficit year-on-year to $500.4 million in H1 2026, according to data from the country's National Bank.

The trade deficit in goods narrowed 3% to $3.27 billion, while the surplus in services trade expanded 1.7-fold to $1.97 billion within the current account structure.

The "primary income" category, namely the difference between investment income outflows and inflows from the wages of temporary workers abroad, recorded a deficit of $1.09 billion, down 8.4%. Meanwhile, the surplus in the "secondary income" category, namely the balance of transfers received from abroad by the government, rose 11.2% to $1.89 billion.

Net borrowing on the financial account was $112.4 million, down 88.9%. The net inflow of direct investment declined 31.6% to $535 million, the net inflow of other investment jumped 4.5-fold to $150.5 million, and the net inflow of portfolio investment rose 2.2-fold to $543.4 million within the financial account structure.

Georgia narrowed the current account deficit to a historic low of $1 billion in 2025, or 2.6% of GDP, from $1.8 billion in 2024.