Georgia’s Exports Decreased to the 2011 Level

The reason for this decline is the devaluation of national currencies and the economic downturn in the neighboring countries  which are  trade partners of Georgia. According to experts, if the government works closely with the business, a  small increase in exports could  be recorded in 2016 but significant progress in any case should not be expected.

 

The first heavy blow was dealt to export at the beginning of 2015. In January-February 2015, a  26% decline was recorded while  total exports in 2015 amounted to $ 2.2 billion that  is 23% less than in 2014.
 

In 2009, Georgia exported goods worth $ 1.1 billion, in 2010 - $ 1, 6 billion, in 2011 - $ 2, 1 billion, in 2012 - $ 2, 3 billion. in 2013- $ 2, 9 billion, in 2014 - $ 2.8 billion.

 

According to the expert Soso Archvadze, in 2016 exports will be characterized by two opposing trends, in particular, a significant reduction in demand for Georgian goods due to the devaluation of the national currency in the partner countries. The second trend is  opposite: the Russian market turned out to be free for Georgian producers because of the tense political situation and the anti-Turkish sanctions announced by Moscow (Turkey was  one of the main suppliers of agricultural products to  Russia)  - for example, 60% of tomatoes in Russia were imported from Turkey and after the imposition of sanctions Russia was forced to look for alternative suppliers.

 

"This also applies to other agricultural products. If Georgian producers work properly, they will be able to take a considerable segment of the Russian market. In addition, imports will become cheaper in Georgia due to the devaluation of currencies of neighboring countries,"- the expert notes.

 

The official statistics in January 2016 shows a resumption of growth in wine exports, which amounted to 13% compared to the same period of 2015. According to the National Wine Agency, export to Russia has particularly increased - after a 60% decline in the last year, it grew by 162% in January 2016. Overall wine exports in January 2016 amounted to 521 802 bottles.
 

According to the expert Zviad Kandelaki, export growth should  not be expected  in 2016, since the sales  of Georgia's main export products are hampered.

 

It is also obvious  that exports can’t bring a serious income as Georgia does not produce such a large number of agricultural products.
 

According to official data, vegetables were not included even in the top ten export commodities, and most of Georgia's exports are copper concentrate and ferroalloys, followed by cars, exports of which have declined sharply.

 

The fourth place is occupied by the nuts, but the situation remains unstable in this regard too - the price of nuts has fallen by almost 50%, and if it continues, then this figure will be reduced. On the fifth place are medicines  while  wine is   only on the 7th.