External Trade Grows

External Trade Grows

- in Economy

In the January-March period, Georgia’s external trade turnover (excluding undeclared trade) totaled 2.8 million USD, up 23.3% from during the past year, including exports totaling 740.3 million USD (up 28.4%) and imports amounting to 2,083.4 million USD, up 21.6%. Georgia’s negative trade balance equaled to at least one,343.1 million USD, that\’s 47.6% in external trade turnover. In the same period, exports without re-exports constituted 554.8 million USD, up 18.6% as compared to the same period in 2017.

It is noteworthy that this January-March exports, imports and negative trade balance were the greatest they\’re over the past five-years. In the western world percentage indicator, better indicators versus 1Q18 were registered only in 2014. For example, within the same period in 2017, the negative trade balance was 49.6%, in 2016: 54.2%, in 2013-2015: 48.3%, 45% and 56.4%. Despite decreased negative trade balance overall as compared to the past three years, the number of countries where Georgia’s exports are of lower value when compared with its imports increased in 2018.

In January-March 2018 Georgia’s upload turnover with EU countries totaled 820.2million USD, up 27.6% as compared to the same period in 2017, including exports totaling 209.4 million USD, up 31.4%, and imports of 610.7 million USD, up 26.4%. Precisely these countries in Georgian move turnover was 29%, including 28.3% in exports and 29.3% in imports. In January-March 2017 these indicators were 28.1%, 27.7% and 28.2% respectively. Exactely EU countries in Georgia’s trade deficit made 29.9% (28.5% in January-March 2017).

Foreign trade turnover with CIS countries constituted 976.9 million USD, up 30% in comparison to January-March 2017, including exports totaling 303 million USD, up 48%, and imports of 673.9 million USD, up 23.2%.

The ratio of CIS countries in Georgia’s upload turnover was 34.6%, including 40.9% in exports and 32.3% in imports (32.8%, 35.5% and 31.9% respectively in January-March 2017). Exactely CIS countries in Georgia’s negative trade deficit was 27.6% (30.1% in January-March 2017).

It is noteworthy that in 2018, upload turnover rose with EU countries, but declined with CIS countries. Within the last few years this tendency has become irreversible.

As for major import and export items, oil (import) and copper (export) lead. In January-March 2018, from the best exports items copper ores and concentrates rank first with 118.8 million USD, a 16% ratio of total exports. Exports of ferroalloys constructed 85.1 million USD (or 11.5% of total exports). Motorcars rank third, with 64.9 million USD and eight.8% share.

In this reporting period, the best ten import items ranked oil and oil products first with 186.9 million USD including a 9% ratio. Gas ranked second with 127.4 million USD and also a 6.1% share. Motorcars rank third, with 118 million USD along with a 5.7% ratio.

It should be noted which the ratio of domestic production remains low for Georgia’s exports. The region exports semi-finished products or carries out re-exports of vehicles that bring less benefits of the economy, unlike domestically manufactured products including wines, medications and water.

Thus, the costa rica government of Georgia should focus on developing export-oriented domestic production, this way of western world.

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