External Merchandise Trade (excluding non-declared trade) of Georgia amounted to USD 1 339.8 million in January 2024, 14.9 percent lower year-on-year.
The value of export decreased by 26.3 percent reaching USD 338.2 million, while the import decreased by 10.2 percent and amounted to USD 1 001.6 million.
The trade deficit equaled USD 663.4 million and its share in trade turnover constituted 49.5 percent.
Statistician Givi Momtselidze told Сommersant that a decline in exports is mainly caused by the decrease in the vehicles re-export and the ferroalloys export. According to him, last year the county saw a significant drop in ferroalloys, copper ores and mineral fertilizers exports.
Apart from the vehicles re-export, among the reasons is the decrease in ore and ferroalloys. One of the main reasons for the decline in local exports is a decrease in demand and prices for ferroalloys in the global market as well as the anti-dumping duty of the Eurasian Economic Commission due to which of the ferroalloy factories in Georgia have stopped or cut production.
Overall, I think a decline will be seen in re-exports and net exports that will affect the economy and some sectors, for example, the auto business that will be hit.
A large negative balance, i.e. when imports significantly exceed exports, is very bad. An increased negative trade balance means that a countrydoesn't produce goods and services. To reduce it, some steps should be taken in many directions, for example, tax liberalization, business should also be able to create more, the private sector should have more profits, we should become an attractive country for investments", says Givi Momtselidze.
