Issue 47: External Trade – I Q, 2015

In the first quarter of 2015, the volume of registered trade in goods is 2,277.7 mln. USD. The share of registered import of goods in total turnover is 77.9% and the share of registered export of goods is 21.1%. During this period, the export (-28.0%) and import (-7.1%) volume declined. Export to CIS countries decreased by -55% (-216.4 mln. USD) while to EU countries increased by 21% (29.6 mln. USD). The major contribution in the reduction of export to CIS is a significant decline of export to the following countries: Azerbaijan (-82 mln. USD), Ukraine (-42 mln. USD), Armenia (-41 mln. USD) and Russia (-40 mln. USD). This supports the argument that export diversification remains an important issue.

Export (-21%) and import (-19%) volume continues to decline in April 2015, but the rate of decline of imports is increasing and the rate of decline of exports is decreasing in comparison with the previous months 2015.

Source: Geostat

In the first quarter of 2015, the top five imported commodities in Georgia are: gases (12.8%), motor cars (11.5%), petroleum (11.0%), medication (5.9%), and copper ores (4.3%).

In the first quarter of 2015, the top five exported commodities from Georgia are: copper ores (12.2%), motor cars (11.5%), nuts (10.3%), ferro-alloys (9.6%), and medication (5.0%).

 Source: Geostat

Gases are mainly imported from Azerbaijan and Russia; motor cars – from Japan, USA, Germany, Korea and the United Kingdom; petroleum – from Romania, Azerbaijan, Bulgaria and Turkmenistan; medications – from Turkey, Germany, Hungary, France, Austria and Bulgaria; the copper ores – from Armenia and Morocco.

In the first quarter of 2015, the import of copper ores (41.7%), gases (11%) and medication (9.3%) increased compared to the corresponding period in 2014.

In this period, petroleum (-31.8%) and motor cars (-10.2%) imports declined.

Copper ores are exported mainly to Bulgaria and China; motor cars – to Azerbaijan, Armenia, Belgium and United Emirates of Arabia; nuts – to Italy, Germany and Spain; ferro-alloys – to USA, Russia, Ukraine and Canada; medication – to Uzbekistan, Azerbaijan and Turkey.

In the first quarter of 2015, the export of nuts (2.4 times), copper ores (19%) and medication (83.9%) increased compared to the first quarter of 2014.

Georgia’s export of automobiles dropped (-62%) because Azerbaijan adopted the Euro-4 environmental standard, which restricts the import of cars manufactured in EU before 2005, in USA before 2004, and in Japan before 2011.

In this period, the export of ferro-alloys decreased (-31%).

In the first quarter of 2015, Georgia’s top five import partners are Turkey (27.3%), China (14.3%), Azerbaijan (12.8%), Russia (12.2%) and Germany (9.8%).

In this period, imports increased from Russia (16.3%), Germany (14.2%), China (7.3%) and Turkey (0.03%) but decreased from Azerbaijan (-16.7%) compared to 2014.

Imports from EU as well as from CIS countries declined, respectively by 6% and 2%.

The main commodities Georgia imported from Turkey are medications, turbines, iron and steel construction materials, tubes, cables, napkin liners for babies, washing and cleaning supplies.

The main commodities Georgia imported from China are automatic data processing machines, iron construction materials, telephones, refrigeration equipment, furniture, washing machines, and rubber tires.

The main commodities imported from Azerbaijan are petroleum, gypsum, electricity, margarine, tea, and seed oil.

The main commodities imported from Russia are wheat and muslin, petroleum gases, petroleum, electricity, chocolate, seed oil, and medications.

The main commodities imported from Germany are motor cars, medicaments, instruments and appliances used in medicine and pneumatic tyres of rubber.

In the first quarter of 2015, Georgia’s top five export partners are Azerbaijan (12.7%), Bulgaria (10.3%), Turkey (8.1%), Armenia (6.7%) and Russia (5.4%). In this period exports increased in Bulgaria (20.3%), but decreased in Russia (-59.7%), Azerbaijan (-56.4%), Armenia (-55.2%) and Turkey (-17.4%) compared to the first quarter of 2014.

The commodities exported to Azerbaijan are automobiles and trucks, medications, cows, cement, mineral and aerated waters and iron and non-alloy steel rods.

The commodities exported to Bulgaria are copper ores, crude petroleum and petroleum oils, mineral or chemical fertilizers and ferro-alloys.

The commodities exported to Armenia are automobiles and trucks, fertilizers, oil-cake, corn, medication, and electricity.

The commodities exported to Russia are wines, mineral waters, alcohol, ferro-alloys, automobiles and nuts.

The commodities exported to Turkey are fertilizers, semi-finished products, electricity, wheat, T-shirts, fish, iron and non-alloy steel rods, and medication.