International Trade in Figures – Georgia and the World

According to Munich Economic Research Institute (IFO), in 2018 Germany, Japan and Russia recorded the best trading indicators on international markets.

The positive trade balance of Germany made up 249 billion USD, Japanese’ exports exceeded imports by 173 billion USD, while Russia’s exports surpassed imports by 116 billion USD.

According to IFO report, the EU and US markets record major demand for German products. At the same time, in 2018 the USA’s negative trade balance made up 621 billion USD. Despite trade war with China, the USA’s negative trade balance continues rising. The country sold products of 120 billion USD in China, while the Chinese imports to the USA constituted 487 billion USD. The USA has negative trade balance with EU with 169 billion USD exports and 487 billion USD imports.

As to Georgia, the country is reported to remain under negative trade balance effect; however, the gap between exports and imports gradually shrinks.

According to Geostat, the national statistics service of Georgia, Georgia’s foreign trade turnover in January-May 2019 (without undeclared trade) made up 4 959.4 million USD, up 1.1% compared to the same period of 2018. In the reporting period, the negative trade balance marked 2 026.1 million USD and this is 40.9% ratio in foreign trade turnover. According to this report, the negative trade balance has fallen to the historical bottom.

Specialists explain that exports growth to the CIS and EU countries drive narrowing the negative trade balance. In January-May 2019 net exports rose to both EU and CIS countries.

In January-May 2019 Georgia sold products of 360.9 million USD to EU countries, up 22.1% year on year. Our exports to the CIS countries increased by 28.3% with 748 million USD exports.

Starting 2019 Turkey, Russia and Azerbaijan are reported to be Georgia’s major trade partners. In general, turnover with these countries as of April 2019 made up 1.3 billion USD, which is 34.6% in total trade turnover.

As to separate countries.  Russia remains major consumer market for Georgian products, where Georgia exported more than 218 million USD products in 2018.

Russia maintained major ratio in imports too with 349 million USD imports to Georgia in January-May 2019. The figure makes Russia Georgia’s second biggest imports countries after Turkey (595.7 million USD).

Analogically to Georgia, Armenia also has negative trade balance. In 2018 Armenia’s negative trade balance exceeded 7.375 billion USD, including exports made up 2.411 million USD and imports constituted 4.963 billion USD. Consequently, the negative trade balance in Armenia made up 2.552 million USD.

Absolutely different situation is reported for Azerbaijan, as its foreign trade turnover in 2018 made up 30.924 billion USD. The country exported oil and oil products of 19.459 billion USD in 2018, while the imports constituted 11.465 billion USD. Consequently, the positive trade balance of Azerbaijan made up 7.994 billion USD.