Georgia’s foreign trade turnover grows 7% in 2014

Georgia’s foreign trade turnover saw positive movement in the first 11 months of the year and has increased by 7 percent year-on-year (y/y) to $10.3 billion USD.

Figures released today by state statistics office Geostat showed that exports grew 0.5 percent y/y and reached $2.62 billion, while imports increased by nine percent and amounted to $7.7 billion in the same period. In addition, the trade gap was 49 percent ($5.1 billion) in total trade turnover.

However, the country’s foreign trade had increased with European Union countries by four percent but had decreased with Commonwealth of Independent States (CIS) member countries by four percent in the reported period.

EU-Georgia trade

Georgia’s foreign trade with EU countries saw positive movement in the first 11 months of the year and amounted 26 percent of Georgia’s total foreign trade.

Latest y/y figures revealed foreign trade with EU countries increased by four percent, equaling $2.7 billion, while exports increased by five percent to $563 million. Similarly, imports from the EU grew by four percent to $2.1 billion.

Trade with CIS countries

Georgia’s trade with Commonwealth of Independent States (CIS) member countries stood at $3.2 billion for the first eleven months of 2014 – a four percent y/y decrease. Georgian exports decreased seven percent to $1.3 billion and imports from CIS member states to Georgia decreased by two percent to $1.87 billion.

The share of CIS countries in Georgia’s external trade decreased by four percent and constituted 31 percent.

Top trade partner

From January to November 2014, Georgia’s top three trading partners were Turkey, Azerbaijan and Russia.

Georgia’s largest trading partner, Turkey, generated a total turnover of $1.7 billion, which was ahead of Azerbaijan’s $1.07billion and Russia’s $752 million total turnover.

Azerbaijan, Armenia and Russia were Georgia’s largest export markets in the reported period. Exports to Azerbaijan stood at $510 million– down from 24.7 percent to 19.4 percent when compared with the same period of 2013.

Meanwhile, exports also decreased to Armenia by 0.8 percent y/y to $269.3 million, while exports to Russia increased by 3.5 percent to $253.6 million.

Top export and import commodities

Re-export of cars remained to be Georgia’s largest export commodity, valued at $492 million in the first eleven months of 2014, despite a drop of about 5.7 percent compared to the same period in 2013.

Export of ferroalloys was the next largest export commodity, which was valued at 260.8 million – up 2.1 percent y/y.

Copper ores and concentrates ranked third at $229.3 million, up 3.3 percent compared to the same period of last year.

Wine exports ranked fourth at $166 million, up 1.9 percent y/y. This accounted for 6.3 percent of Georgia’s total exports.

Georgia’s top exported products include:

• Motor cars - $ 492.5million;
• Ferro-alloys - $260.8 million;
• Copper ores and concentrates - $229.3 million;
• Wine of fresh grapes – $166.1 million;
• Nuts, fresh or dried - $161.1 million;
• Waters, natural or artificial mineral and aerated waters – $130.7 million;
• Mineral or chemical fertilizers, nitrogenous – $121.9million;
• Undenatured ethyl alcohol, spirits, liqueurs and other spirituous beverages – $84.8 million;
• Medicaments - $83.5 million;
• Bars and rods of iron – $59.9 million;
• Other commodities – $837.1 million.

Meanwhile, Georgia imported $834 million worth of petroleum and petroleum oils – the two largest imported products - in the first eleven months of this year.

These two products made up 11 percent of total imports in the reported period. Import of motor cars was next highest, with 655 million, which was 9 percent of total imports.

Petroleum gases and other gases ranked third at $313 million, which was 4 percent of all imports.

Top imported products include:

• Petroleum and petroleum oils – $834.2 million;
• Motor cars – $654.9 million;
• Petroleum Gases and other gaseous - $313.4 million;
• Medicines - $279.4 million;
• Mobile and other wireless phones – $166.3 million;
• Copper ores and concentrates – $161.4 million;
• Wheat – $132.4 million;
• Cigarettes – $ USD 94.4 million;
• Computers – $89 million;
• Metal construction materials – $83.9 million;
• Other commodities – $4.9 billion.

All currencies are in USD.