Georgia's Exports Rise 19.6%: Domestic Products Drive Trade

Georgia's exports grew by 19.6% from January to September, reaching $6.15 billion. Imports rose by only 5.3% to $14.38 billion, according to the Georgian National Statistics Office (Geostat). The Trend news agency reported these figures on October 18.

Trade volume grew by 9.2%

Total foreign trade reached $20.5 billion. The deficit amounted to $8.23 billion. Exports covered 42.8% of imports, compared to 37.7% a year earlier.

July, at 793.9 million U.S. dollars, marked the highest monthly figure in the Geostat series since 2023. September set a record for that month at 731.2 million U.S. dollars.

Domestically Produced Goods Instead of Re-exports

The growth is driven by goods produced in Georgia. Domestic exports, excluding re-exports, rose by 63.5% from January through August. They now account for more than 60% of total exports. On July 20, Geostat noted regarding the first half of the year: “Domestic exports, excluding re-exports, accounted for 61.7% of the total export volume.”

In the first half of the year, domestic exports reached $2.39 billion, up 62.6% from the previous year. Petroleum products lead the way at $466.9 million, accounting for 19.5% of domestic exports. Precious metal ores and concentrates follow at $304.3 million, and ferroalloys at $147.5 million.

The gap between export and import growth is 14.3 percentage points. The coverage ratio rose by 5.1 percentage points. In the first half of the year, total exports amounted to $3.88 billion, 20.0% higher than the previous year. The ten largest buyers accounted for 65.8% of domestic exports.

The trend continued throughout the summer. Growth in domestic exports stood at 62.6% in the first half of the year and reached 63.5% by August. Trend identifies Kyrgyzstan, China, and Russia as the leading destinations for total exports. Georgia thus not only supplies re-exports to its neighbors but also exports its own raw materials and products to Asia.

The largest buyer is China, with $417.0 million. Russia imports $308.4 million worth of goods, and Turkey $243.7 million. According to Trend, automobiles remain the largest export category, though their volume is declining. Imports come primarily from Turkey, Russia, and the U.S.

For German exporters, Georgia remains a market with an import volume of 14.38 billion U.S. dollars over nine months. However, imports are growing more slowly than trade overall. Opportunities lie in equipment for refineries, mining, and ore processing, where exports are on the rise. Investors should assess whether domestic processing can deliver on the promise of domestic exports.

Sources: Geostat (EN), Trend (EN), 1TV (EN)

SK, Frankfurt