Georgia-EU trade turnover increases 10%, reaches $2.5b

Georgia is strengthening its trade relations with the European Union (EU).

Between January and September 2016 Georgia's external trade turnover with EU countries reached $2.5 billion.

Latest figures from the National Statistics Office of Georgia (Geostat) showed external trade turnover between Georgia and EU countries grew 10 percent year-on-year (y/y).

Exports to these countries were worth $389 million, while imports were valued at $2.1 billion.

EU countries made up a 28 percent share of Georgia’s total external trade turnover; 26 percent in exports and 29 percent in imports.

Meanwhile in the same nine months Georgia weakened its trade ties with the Commonwealth of Independent States (CIS) and other countries.

During the reporting period Georgia’s external trade turnover with CIS countries reached $1.8 billion – an eight percent reduction y/y.

Exports were worth $495 million (22 percent lower) while imports equalled $1.3 billion (two percent lower).

Georgia’s top trading partners in January-September 2016

Georgia’s top 10 trading partners in the first nine months of 2016 made up 70 percent of Georgia’s total trade turnover, said the statistics agency.

In January-June, Georgia’s top four trading partners were:

• Canada ($1.8 billion)
• Turkey ($1.1 billion)
• Ireland ($621 million)
• Russia ($612 million)

What are Georgia’s main exports?

Georgia's top exported items in January-September were:

• Copper ores and concentrates (worth $243 million or 16 percent of total exports)
• Motor cars (worth $121 million or eight percent of total exports)
• Ferro-alloys (worth $120 million or eight percent of total exports)

What are Georgia’s main imports?

Georgia's top imported items were:

• Medicines (worth $2.5 billion or 34 percent of total imports)
• Petroleum and petroleum oils (worth $412 million or five percent of total imports)
• Motor cars (worth $338 million or four percent of total imports)

Regarding import of medicines, $2.3 billion of medicine was specifically used as Hepatitis C treatment.

Georgia's external merchandise trade

In the first nine months of 2016 Georgia's external merchandise trade (excluding non-declared trade) was $9.10 billion - 24 percent growth y/y, said Geostat.

Between January and September the value of Georgia’s export dropped eight percent to $1.51 billion, while the value of imports increased 34 percent to $7.59 billion.

Georgia’s trade deficit equalled $6.08 billion in the first nine months of 2016.

Trade deficit is an economic measure of a negative balance of trade in which a country's imports exceeds its exports.