Georgia's trade deficit shrinks to $7.07 billion: Imports grow by only 3.3%

Georgia's trade deficit from January through August totaled 7,070.5 million U.S. dollars. A year earlier, the monthly figures totaled 7,650.7 million U.S. dollars. The deficit thus shrank by 7.6%. The National Statistics Office (Geostat) released the figures on September 14.

Imports were the deciding factor. Georgia imported goods worth 12,493.0 million U.S. dollars, just 3.3% more than in the same period last year. Exports, on the other hand, rose by 22.1% to 5,422.6 million U.S. dollars. Total merchandise trade reached 17,915.6 million U.S. dollars, an increase of 8.3%. The deficit amounted to 39.5% of trade turnover.

August Reinforces the Trend

In August, Georgia exported goods worth $752.4 million. In August 2025, the figure was $603.1 million—an increase of 24.8%. Imports totaled $1,550.9 million, up from $1,497.5 million—an increase of 3.6%. The monthly deficit fell from $894.3 million to $798.5 million.

It remains unclear for now which goods are driving the surge in exports. Geostat announced that detailed data by commodity group and trading partner country would be released on September 21.

Central Bank Keeps Key Interest Rate at 8.25%

The National Bank of Georgia kept its key interest rate at 8.25% on September 9. It has remained at this level since early May. Annual inflation stood at 5.6% in August. The core rate was 3.6%, while inflation for services was 4.4%. The central bank expects an average of 5.2% for 2026.

“Economic activity remains strong,” the Monetary Policy Committee wrote in its September 9 statement. According to preliminary data, the economy grew by 8.0% in July. The average for the first seven months was 7.9%. The statement goes on to say that high-productivity sectors are driving growth and mitigating price pressures stemming from strong aggregate demand.

For German exporters, the statistics convey an unfavorable message. The Georgian economy is growing by just under 8%, but imports of goods are rising by only 3.3%. This growth is driven by the services sector, which imports very little. Anyone who gauges the market by gross domestic product is overestimating its size.

Two factors, however, work in Georgia’s favor. The shrinking deficit is supporting the lari, and a stronger currency makes European capital goods cheaper locally. The key interest rate of 8.25%, on the other hand, makes financing more expensive for customers. German suppliers find it easier to sell their products if they offer export credits or supplier credits.

Sources: Geostat, Express Release on Foreign Trade January–August 2026, September 14, 2026 (EN); National Bank of Georgia, Decision of the Monetary Policy Committee, September 9, 2026 (EN).

SK, Frankfurt