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Export from Georgia Continues to Decrease

The volume of export from Georgia significantly decreased in January-August period of this year. In the first eight months of 2015, the export volume from Georgia reduced by 24% and amounted to $1,459 million.

In the same period, the foreign trade turnover amounted to $6,395 million. Export makes only 23% of foreign trade turnover. In January-August 2015, exports to the CIS countries decreased considerably. The figure totals  $556 million and  is 45% lower than the previous year’s data. Exports to the EU increased by 1%, constituting $413 million.

CIS countries account for 38% of Georgia’s exports. In the same period of 2014 this figure was 52%. The share of the EU countries in Georgian exports is 28% and is seven percentage points higher than in the previous year.

Azerbaijan still remains the country’s largest trading partner, but the volume of export from Georgia to this neighbor country has reduced significantly. In first eight months of 2015, export to Azerbaijan amounted to $172.6 million which is 54% less than in 2014.

The main reason behind the decline in the volume of Georgian exports to Azerbaijan was Azerbaijan’s 2014 transition to Euro 4 Standard, which regulates the level of toxic emission from all vehicles.

Export has also decreased to Georgia’s main trade partners – Russia (-47%), Armenia (-36%), Turkey (-16%). Bulgaria is a significant increase (+ 28%), China (+ 49%), Uzbekistan (74%) and Canada (55%).

According to the data for the first eight months of 2015, copper ores and concentrates are in the top ten of the largest export commodity groups with  $172 million (12% of total exports). However, compared to January-August, a 7% decline in exports in this commodity group is also observed.

Exports of ferroalloys is on the second place with $149 million (10 % of total exports ), a 26% decline compared to the previous year, followed by vehicle group with  $125 million (9% of total  exports), a 66% decline compared to the previous year.