Georgia’s exports up in the first 6 months of 2023 - PMCG

In the first half of 2023, external trade turnover in Georgia amounted to US$10.3 bln, which is 20.1% higher than in 2022. 

Georgian exports amounted to US$3.1 bln in the first 6M of 2023, which is 19.3% more than the corresponding period of 2022. Meanwhile, Georgian imports reached US$7.2 bln in the first half of 2023, which is 20.4% higher than the first 6M of 2022.

In the first half of 2023, the Georgian trade deficit increased by US$0.7 bln (21.3%) YoY.

In the first half of 2023, compared to the corresponding period of 2022, Georgia’s trade turnover increased with Russia (32.0%), and the EU (21.1%), and decreased with China (-13.9%).

The share of trade with Russia and the EU has increased in the first 6M of 2023. However, in contrast, the share of trade with China has experienced a significant decrease on the exports side, bringing it back to its 2019 level of under 8%.

In the first half of 2023, compared to the corresponding period of 2022, there was a significant shift in the composition of primary commodity exports. Notably, the export of motor cars took the lead, accounting for 32.5% (+21.9pp, YoY). The share of copper ores decreased drastically (-9.7pp, YoY), aligning with reduced demand and a decline in its market price.

Georgia has now joined an additional set of sanctions directed toward Russia. Starting from August 1st, limitations have been placed on the export of imported automobiles from the United States to Russia and Belarus. These restrictions will also encompass vehicles imported from Europe starting in September.

In the first half of 2023, compared to the corresponding period of 2022, there were slight fluctuations in the composition of primary commodity imports. Notably, the import of motor cars sustained its leading position, comprising 18.2% of the total imports, marking a YoY increase of 6.9pp. 

Likewise with exports, the share of copper ores in the total imports has fallen significantly (-4.0pp, YoY). Therefore, in the first half of 2023, copper ores no longer held a position within the top 5 imported commodities.