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GEORGIA ON EU MARKET – REPORT ON GERMANY

Germany is one of the oldest members of the European Union (since 1952) and Georgia’s one of the major trade partners among EU countries.

According to the 2013 report, Germany ranks 11th among Georgia’s major exports markets with a 2.5% ratio. At the same time, Germany ranks 6th among Georgia’s major imports markets with a 5.7% ratio, while Germany’s ratio in Georgia’s total imports among EU countries is 19.8%.

In January to October 2014 Germany emerged as Georgia’s one of the major trade partners among the EU countries. In the reporting period Germany ranked 12th among Georgia’s exports markets with a 2.3% ratio. At the same time, the ratio of Germany Georgia’s EU exports markets marked 10.7%.

Georgia’s exports to Germany in 2013 marked 73 million USD, up 89.2% compared to 2012 and up 2.5 times compared to the 2002 to 2012 averaged indicator.

The table shows Georgia’s imports from Germany records a growing tendency from 2000 to 2008.The year of 2009 may be called as a crisis period, when the imports volume declined by about 39.2% compared to 2008, but the German products imports turned growing in 2010, while downturn tendency arose in 2012 again. The indicator has dropped by 17.1% since 2012.

The highest imports volume from Germany for the last 14 years was recorded in 2012 (541.9 million USD).

In 2013 Georgia’s exports to Germany rose by 0.9% compared to 2012 and marked 2.5% in Georgia’s total exports. The ratio of Germany in Georgia’s total exports to EU countries rose to 12% from 10.9%.

In the reporting period of 2000 to 2014, the highest ratio of Germany in Georgia’s total exports hit 10.5% in 2000. In 2000 Germany’s ratio in Georgia’s total exports to EU countries marked 43.2%.

Georgia’s major exports items to Germany in 2013

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The above table shows, the ratio of filbert and nuts in Georgia’s total exports to Germany marked 64.9%, wastes and scrap iron of precious metals – 4.3%, Crops and other parts of plants, tinned or prepared in different way – 3.4%, Wheat Milled Purely or Rudely, Powder of Dried Leguminous Vegetables – 2.5%. The ratio of other products marked 24.8%.

It is worth noting in 2013 Georgia exported filbert and nuts to about 40 countries, including the ratio of Germany marked 28.4%. The ratio of Germany in Georgia’s total exports of wastes and scrap iron of precious metals made up 30.4%, Crops and other parts of plants, tinned or prepared in different way – 76.2%, Wheat Milled Purely or Rudely, Powder of Dried Leguminous Vegetables – 55.4%, Female Clothes, Overalls, Breeches and Shorts – 37.7%, juices of fruits and vegetables – 22.3%, manganese oxides – 13.3%.

The ratio of Germany in Georgia’s total filberts exports marked 28.4% in 2013, Kazakhstan – 17.6%, Italy – 11.4%, Czech Republic – 5.4%, other countries – 37%. At the same time, over 50 countries exported filbert and nuts to Germany in 2013, besides Georgia, including major competitors were the USA with 40%, Turkey – 9.7%, Spain – 9.2%, the Netherlands – 7.6%, Italy – 6.6%, Belgium – 5.2% and France – 3.5%. Georgia ranks 8th in Germany’s total exports of filbert and nuts with a 3.3% ratio.

In terms of value, the ratio of peeled filbert (code 080222) is 99% in Georgia’s total exports of filbert and nuts to Germany. In terms of the mentioned product Georgia ranks third with a 19% ratio in Germany’s total exports of filbert and nuts after Turkey and Italy.

Georgia’s major exports items to Germany in January to October 2014

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Filbert and nuts ranked first in Georgia’s total exports to Germany in January to October 2014. The item’s ratio marked 50.1% compared to 64.9% in 2013.

The category of Spares and Appliances of Tractors, Motorcars, Trucks and Special Machines marked second with 4.6%; the category of juices of fruits and vegetables marked third with a 3.9% ratio. The ratio of Crops and other parts of plants, tinned or prepared in different way marked 3.7%, the ratio of Female Coats, Raincoats and Similar Goods hit 2.8%, the ratio of Wheat Milled Purely or Rudely; Powder of Dried Leguminous Vegetables equaled 2.4% and so on.

Net Exports

To outline a real picture of Georgia’s exports to Germany, we should observe the exports without re-exports, that is net exports. In January to October 2014 compared to the same period of 2013 Georgia’s re-exports to Germany rose about 6.6 times to 8977.5 million USD, compared to 1352.7 million USD in the same period of 2013.  The ratio of re-exports in Georgia’s total exports to German was insignificant in 2013 (3.4%), but the figure hit 16% in January to October 2014.

Analysis of net exports and re-exports in 2013 due to the major commodity groups:

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According to the above table, Georgia carried out re-exports of only the following products from the top major exports items to Germany in 2013:  Spares and Appliances of Tractors, Motorcars, Trucks and Special Machines – 72.9%,  Wheat Milled Purely or Rudely; Powder of Dried Leguminous Vegetables  – 9.9% and filbert and nuts – 0.2%. It should be also noted the ratio of the mentioned products in Georgia’s total re-exports to Germany in 2013 marked only 31.3%. The remaining ratio is recorded for the products that are not recorded in the list of ten top exports items to Germany. Namely, the ratio of re-exports of electric transformers and static electric transformers exported to Germany in 2013 marked 95.7%. The re-exports ratio in total exports of pharmaceutical products marked 99.8%; the ratio of re-exports in total exports of Spares of Tractors, Motorcars, Trucks and Special Machines marked 91.2%;

 

Imports

Georgia’s Major Imports Items from Germany in 2013

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The above table demonstrates the ratio of motorcars in Georgia’s total imports from Germany in 2013 marked 26.9%; the ratio of packed medicines marked 5.2%, trucks – 4.2%, Appliances and Devices for Medical or Veterinary Sectors – 2.9%-%, Tractors and Saddle Straps – 2.7%, spares of vehicles – 2.5%.

In 2013 Georgia imported motorcars from many counties, including the ratio of Germany made up 17% and ranked first among European countries. The ratio of Germany in Georgia’s total imports of medicines in 2013 marked 8.3%,  trucks – 23.8%, Appliances and Devices for Medical or Veterinary Sectors – 43.1%, Tractors and Saddle Straps – 28.9%.

 

Georgia’s Major Imports Items from Germany in 2014

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 The above table shows the content of major imports group in January to October 2014 has changed compared to 2013. The ratio of the commodity contrary to 2013, the item of Tractors and Saddle Straps has been replaced by Malt.

Economy and HealthCare Research Center of University of Caucasus