In 2014, the breakdown of Georgian exports by country noticeably differed from 2005 (before Russian embargo). In 2005, Russia was the largest market for Georgian exports and the share of Russia with a share of 17.8%. In 2014, the largest trading partner for Georgia in terms of exports is Azerbaijan (19% of total export), followed by Armenia (10%) and Russia now sits third having reduced to 9.6% (US $274.7 mln).
It should be noted that in 2005 Georgia exported to 93 countries, while by 2014 the number of countries had increased to 120.
From 2005 to 2014, the annual average growth rate of Georgian export (excluding Russian market) was 18.8% and exports increased by US $1 874.5 mln, in total.
The dependence on the Russian market reduced and the market for export has become more diversified which in some ways offsets the impact of external economic factors (embargo) on Georgian exports.
China is the second largest trading partner of Georgia. In 2014, total trade turnover between Georgia and China amounted to 823.4 mln. USD, which is 7.2 % of total turnover.
Georgia and China intend to intensify bilateral trade and economic relations through concluding Free Trade Agreement (FTA).
PMCG conducted research about the economic feasibility of this agreement. The study uses the “partial-equilibrium” model, which analyzes the possible results in a short-run period.
The study shows that FTA can contribute to increase the volume of export from Georgia to China. The volume of import and FDI from China to Georgia will also increase.
In June 2015, compared to the corresponding period in 2014:
• The volume of deposits increased (24.8 %; 2 719.5 mln GEL), as well as increased the volume of loans to the national economy (32.6 %; 3 664.7 mln. GEL). Considering the effect of foreign exchange rate, the volume of deposits increased by 7.3 % and the volume of loans to the national economy - by 14.7 %.
• Considering the effect of foreign exchange rate, the share of the deposits denominated in foreign currency decreased by 1.0 % point, while the share of the loans denominated in foreign currency decreased by 2.4 % point.
In January-June 2015, compared to the corresponding period in 2014, the total profit of commercial banks increased by 26.3 % and equals to 243 mln. GEL.
In June 2015, compared to June 2014, consumer prices increased by 4.5%.
In this period, the highest growth of prices recorded on the following categories: • Alcoholic beverages and tobacco (11.4%). Among them increased the prices of vodka (28.5%), domestically produced non- filter cigarette (23.6%) and beer (14.6%). • Furnishings, household equipment and maintenance (8.2%). Among them increased the prices of paper napkins (21.6%), vacuum cleaner (16.8%) and air conditioner (14.6%). • Health care (7.4%). Among them the prices increased on anti-inflammatory medicines (28.2%), vitamins (21.4%), antibiotics (20.3%) and hospital services (5.1%).
In this period, the largest reduction of prices recorded on the following categories: • Clothing and footwear (-3.3%). Among them prices declined on child’s jacket (-12.8%), man’s suit (-10.0%), child’s shirt (-5.2%) and girl’s summer shoes (-4.6%). • Transport (-0.6%). Among them prices declined on diesel fuel (-7.5%) and intercity motor transport tariff (-7.1%).
In June 2015, the prices of commodities of the subsistence minimum basket increased on avarage by 18.2%, while the subsistence minimum for working age male increased on avarage by 7.9 %.
In the first quarter of 2015, the nominal GDP increased by 8.3% and real GDP increased by 3.2% compared to the first quarter of 2014.
In this period, total volume of the final consumption expenditures as well as gross capital formation increased (7.9%, 32.1% respectively). Total volume of exports declined in national currency (GEL) by 0.5% and in foreign currency (USD) by 16.0%. Total volume of imports increased in national currency by 12.0%, but declined in foreign currency by 5.4%. This difference can be explained by the depreciation of national currency (18.5%).
საქართველო, როგორც მცირე ღია ეკონომიკა, მნიშვნელოვნად არის დამოკიდებული საგარეო ფაქტორებზე, მათ შორის უცხოეთიდან შემოსულ ფულად ნაკადებზე, როგორებიცაა პირდაპირი უცხოური ინვესტიციები და ფულადი გზავნილები. 2015 წლის ბოლომდე მოსალოდნელია ფულადი გზავნილების 330 მლნ.დოლარით შემცირება, თუმცა გაცვლითი კურსისა და მულტიპლიკატორის ეფექტის გათვალისწინებით, აღნიშნული არ გამოიწვევს ნომინალური მშპ-ს (ლარში) 1%-ზე მეტად შემცირებას.
In the first quarter of 2015, the production in business sector increased by 11.9%. in comparison with the first quarter of 2014. In this period the average monthly remuneration of employed individuals increased by 72.6 GEL and the number of employees in the business sector increased by 49 661 unit.
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.
In 2014, the share of education expenditure as % to GDP is 2.9% and its share in total public expenditure is 9.2%.
The planning of the education reforms started in 2005 and their active implementation phase started in 2007. In 2014, the indicator of education expenditure increased by 8.4% compared to 2013 and by 92.6% compared to 2007.
In the first quarter of 2015, the state budget revenues increased (14.6%) compared to the first quarter in 2014. Among them, tax revenues increased by 11.5% (189.1mln. GEL), grants by 6 times (48.7 mln. GEL) and the other receipts by 21.4% (11.4 mln. GEL). In this period the revenues increased from profit (26.5%), value added (11.8%), income (4.5%) and excise (11.3%) and declined from import (-22.6%) taxes.
In the first quarter of 2015, the state budget expenditures also increased (8.8%) in comparison with the indicator of the same period in 2014. Among them, expenditures on percent increased by 40.5%, on payments of employees by 10.1%, on social protection by 9.6%, on subsidies by 8.1%, on grants by 4.5%, on goods and service by 2.6% and on other expenditures by 7.1%.