Page 28 - GEORptAug21

Moreover, it highlighted structural reforms, including in the judiciary, as a path to improving the business environment and enhancing private sector-led growth.
Under the EFF arrangement, Georgia has so far received special drawing rights to foreign exchange reserve assets of some $585mn.
5.1.1 Import/export dynamics
Georgia’s exports up 30% year-on-year in June
Georgia's exports rose by nearly one-third year-on-year in June, while PPI for industrial goods rose 15%, Galt&Taggart reported.
In June, exports growth came in at 30.1% y/y to US$ 349.3mn after growing by 44.8% y/y in the previous month (notably, exports were up by 12.5% compared to June 2019). Imports increased by 37.5% y/y to US$ 837.2mn, after a 41.2% y/y growth in previous month (notably, imports were up 13.4% compared to June 2019). As a result, the trade deficit widened by 43.3% y/y to US$ 487.9mn in June.
Also in June, copper (-14.3% y/y), ferro-alloys (+397.1% y/y), cars (+34.2% y/y), wine (+17.7% y/y) and mineral waters (+107.8% y/y) were the top 5 exported commodities. A total of 19.8% of exports were directed to the EU (+10.3% y/y), 50.8% to the CIS (+61.4% y/y) and 29.4% to other countries (+7.2% y/y).
Copper (+116.8% y/y), petroleum (+96.7% y/y), cars (-18.8% y/y), pharmaceuticals (+39.6% y/y) and telephones (+11.9% y/y) represented the top five imported commodities in June 2021.
Overall, in 1H21, the trade deficit was up by 14.5% y/y to US$ 2.4bn, as exports increased by 25.2% y/y to US$ 1.9bn (up 5.3% compared to 1H19) and imports increased by 18.9% y/y to US$ 4.3bn (down 1.5% compared to 1H19).
Annual PPI for industrial goods was up 15.7% in June 2021 from 15.5% in previous month, according to Geostat. Price changes in manufacturing (+15.5% y/y) and electricity, gas, steam and air conditioning (+20.5% y/y) contributed the most to the overall index change.
28 GEORGIA Country Report August 2021 www.intellinews.com