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5.0 External Sector & Trade
5.1 Balance of payments, current account
Georgia - External Trade 2012 2013 2014 2015 2016 2017 2018 2019* Jan-Sep
External trade turnover ($ mn)
10,433 10,933 11,463 9,505 9,407 10,679 12,492 9,194
Export (FOB) ($ mn)
2,377 2,910 2,861 2,205 2,113 2,736 3,356 2,719
Import (CIF) ($ mn)
8,056 8,023 8,602 7,300 7,294 7,943 9,137 6,474
Balance ($ mn)
-5,680 -5,112 -5,741 -5,096 -5,181 -5,207 -5,781 -3,755
Export excluding re-export ($ mn)
1,606 1,812 1,819 1,604 1,621 2,010 2,226 1,690
Current account BPM6 ($ mn)
-1,853.0 -934.7 -1,763.6 -1,684.3 -1,934.9 -1,311.1 / /
Current account to GDP (%)
-11.7% -5.8% -10.7% -12.2% -12.9% -8.8% -7.7% /
Source: Geostat
5.1.1 Import/export dynamics
Georgia’s trade balance improves for fourth straight quarter
Georgia’s trade deficit narrowed by 7.4% y/y to €1.33bn in the third quarter, with the external balance improving for the fourth consecutive quarter. A gradual and moderate weakening of the Georgian lari (GEL) played an important and visible role on the import side.
The annual dynamic of imports altered in September, when they increased by 4.2% y/y in contrast to the weak 0.5% y/y advance of exports. Nevertheless, it would be premature to conclude that the developments in foreign trade indicate an established inflection point. Quarterly data, which are less volatile, show that the trade deficit is stabilising at around $12.5bn on a rolling 12-month period basis.
The steady improvement in the country’s trade balance might encourage the
24 GEORGIA Country Report December 2019 www.intellinews.com
