Q1 2021 data: gross external debt of Georgia increases by $22.6 mln

Georgia currently owes $20.6 billion in external debt, and this amount is growing, says the National Bank of Georgia (NBG).

During the first quarter of 2021, the gross external debt of Georgia increased by $22.6 million.

Out of that, $467.4 million increase was due to transactions and $15.9 million increase - due to price changes.  Meanwhile, gross external debt of Georgia decreased by $332.8 million due to exchange rate changes and by $127.9 million due to other changes during the first quarter 2021", says the NBG.

Public sector external debt amounted to $9.9 billion or 64% of GDP, while banking sector external debt amounted to $4.4 billion or 28.5% of GDP.

Georgia’s international investment position (IIP) amounted to -$23.9 billion for March 31, 2021. Net IIP has improved by $1 billion compared to the previous quarter, said NBG.

An IIP is a financial statement that explains the value and composition of a country’s external financial assets and liabilities. A positive IIP value indicates a nation is a creditor nation, while a negative value indicates it is a debtor nation, as is the case for Georgia.

Meanwhile other data from NBG on the country’s balance of payment indicated how much money entered and left the country. The NBG said Georgia’s current account deficit of balance of payment was $365.5 million. 

The trade of goods and income account make negative contribution to current account, while services account and current transfers - positive", said NBG.

In the first quarter of 2021 current account deficit decreased by 13.8% annually and current account deficit to GDP from -11.2% to -10.7%.