Georgia’s foreign trade turnover with goods reached 21.5 billion USD in 2023, marking a 12.5% increase compared to the previous year, according to the latest data from the National Statistics Office of Georgia (GEOSTAT).
Exports and Imports Grow by 9.1% and 14.0% Respectively
The data shows that Georgia’s exports amounted to 6.1 billion USD, which is 9.1% higher than in 2022, while imports reached 15.4 billion USD, which is 14.0% higher than the previous year. The trade deficit, which is the difference between exports and imports, was 9.3 billion USD, or 43.4% of the total trade turnover.
The main export commodities of Georgia in 2023 were copper ores and concentrates, ferroalloys, motor cars, wine, and mineral waters. The main import commodities were petroleum and petroleum oils, motor cars, medicaments, copper ores and concentrates, and mobile phones.
Top Trading Partners: Azerbaijan, Turkey, and the USA
The data also reveals that Georgia’s top trading partners in 2023 were Azerbaijan, Turkey, and the USA. Azerbaijan was the largest export market for Georgia, with 862 million USD worth of goods, followed by Armenia, Kazakhstan, Kyrgyzstan, and Russia. Turkey was the largest source of imports for Georgia, with 2.6 billion USD worth of goods, followed by the USA, Russia, China, and Germany.
The share of the European Union (EU) in Georgia’s foreign trade turnover was 26.5%, of which 16.1% were exports and 30.1% were imports. The share of the Commonwealth of Independent States (CIS) was 18.8%, of which 34.5% were exports and 13.4% were imports.
Reasons and Implications of the Trade Growth
The growth of Georgia’s foreign trade turnover in 2023 can be attributed to several factors, such as the recovery of the global economy from the COVID-19 pandemic, the diversification of export markets and products, the implementation of free trade agreements with the EU, China, and other countries, and the improvement of the business environment and infrastructure in Georgia.
The increase in foreign trade turnover is a positive sign for Georgia’s economic development, as it indicates a higher demand for Georgian products and services, a greater inflow of foreign currency and investment, and a stronger integration with the regional and global markets. However, the trade growth also poses some challenges, such as the need to reduce the trade deficit, enhance the competitiveness and quality of Georgian products, and address the potential risks of external shocks and trade disputes.
