Negative Trade Balance Sees a 5 Year Low
CIS Countries Expand Exports Ratio in Georgia’s Foreign Trade Turnover amid Slowdown with EU Countries.
In January-February 2019, Georgia’s foreign trade turnover made up 1,739.8 million USD, up 3.6% year on year, including exports, which constituted 505 million USD, up 13.2%, and imports were marked at 1,234.8 million USD, up 0.1%. Georgia’s negative trade balance in January-February 2019 amounted to 729.8 million USD, which is 41% in foreign trade turnover. In the same period, exports without re-exports constituted 342.6 million USD, up 5.2% as compared to the same period of 2018.
As for Europe, in January-February 2019, Georgia exported 118.2 million USD products to EU countries, down 10.7% year on year. The ratio accounts for 23.4% in total exports of Georgia. Import volume made up 304.2 million USD, down 4.5%. The figure constitutes 24.6% in total imports. Georgia’s foreign trade turnover with EU countries amounted to 422.4 million USD, down 6.3% year on year. As for the trade deficit in January-February 2019, its ratio in total negative trade balance made up 25.5%.
In January-February 2019, Georgia’s exports to CIS countries made up 254.8 million USD, up 45.7% year on year. The figure constitutes 50.4% of total exports. Imports in the reporting period amounted to 372.9 million USD, down 14.4%, and this is 30.2% in total imports.
Foreign trade turnover with CIS countries made up 627 million USD, up 2.8% year on year. As for the trade deficit, its ratio, in total negative trade balance, in January-February 2019 was at 16.2%.
In the reporting period, the ratio of the top ten exports markets in Georgia’s total exports constituted 73.7%, including Russia – 81.3 million USD, Azerbaijan – 58.4 million USD and Turkey – 39.6 million USD.
As for imports, the ratio of top ten importer countries in Georgia’s total imports constituted 69.6%, including top three importer countries: Turkey – 194 million USD, China – 142 million USD and Azerbaijan – 126 million USD.
Regretfully, Georgia’s exports products are less diverse. For example, in January-February, Georgia’s exports made up 505 million USD, where the ratio of top ten exports items accounts for 67% in total exports (336 million USD), and the ratio of all other products was 33% (168 million USD).
As for the top ten export products, two of them are not manufactured in Georgia, and they are re-exported – vehicles and tobacco. Three of them are semi-finished products – ferroalloys, gold and copper. It is worth noting that this tendency has been ongoing for many years, and it does not only reflect the details of 2019 January-February foreign trade .