Georgia’s external debt at $23.5 billion

The gross external debt of Georgia increased by $1.4 billion during the fourth quarter of 2022 and stood at $23.5 billion at the end of the year, the National Bank said in its latest update of national debt statistics on Friday.

The Bank said the figure had increased by $764.2 million due to exchange rate changes, by $568.1 million through transactions and by $66.3 million due to price changes, while “other changes” led to its decrease by $8.7 million.

The external debt of the public sector reached $10.6 billion, or 43.2 percent of the gross domestic product, while the banking sector’s external debt amounted to $896.2 million, or 3.6 percent of the GDP, the institution also revealed.

Georgia’s international investment position amounted to -$28.3 billion for December 31 2022, with Net IIP deteriorating by $1.8 billion compared to the previous quarter. The 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.

Other updated data from the Bank on Georgia’s balance of payment indicated how much money had entered and left the country, with the figures showing the current account had “become negative” and the deficit equalled $540.0 million. 

The NBG noted the trade of goods and income accounts made a “negative contribution” to the current account, while services account and current transfers made a “positive effect”. In the fourth quarter of 2022, the current account was 4.1 percent of GDP.