Page 20 - GEORptMay18

5.1.1 Import/export dynamics
Georgia’s foreign trade deficit increases by 17.5% y/y in Jan-Mar
Georgia launches €33.2mn PPP to promote agricultural exports to EU
Belarus’ vows to double bilateral trade with Georgia to $200mn
Georgia's foreign trade deficit increased by 35.6% y/y in March to $543.7mn, according to national statistics agency Geostat. The deficit reached $1.34bn in January-March, up 17.5% y/y from $1.14bn in the same period last year.
A commodity importer, Georgia's foreign trade has sustained chronic deficits, despite the government's efforts to promote exports. In March, imports surged 34.7% to $837.7mn while exports rose 33.1% to $293.9mn.
Georgia is launching a GEL100mn (€33.2mn) public-private partnership to promote agricultural exports to the EU and other destinations, Georgia Today reported on March 8. The initiative, called the Imereti AgroZone Development, aims to boost agricultural production and give local farmers in the Imereti region in northwestern Georgia access to greenhouses and technology in order to produce goods that meet EU standards. Furthermore, two logistics complexes will be built near the airport of Kopitnari in Imereti and in Rustavi, eastern Georgia, as part of the project. Georgia's main exports comprise of mineral commodities and automotive re-exports. The country imports foodstuffs from Turkey, with which Georgian small-scale producers struggle to compete.
Tbilisi has been making efforts to promote regional development and employment creation, seeing how job opportunities outside Tbilisi and the seaside resort belt are scarce and many Georgians struggle with under- and unemployment. The fact that Georgians struggle to make ends meet at home has prompted a deluge of Georgian asylum seekers to the EU in recent months.
Meanwhile, Belarus and Georgia intend to double bilateral trade to $200mn in 2018, from $93.5mn in 2017, Belarusian President Alexander Lukashenko said during a press conference in Georgia, where he travelled to meet with his Georgian counterpart Giorgi Margvelashvili and to lead a business delegation. Belarus' main exports to Georgia are railcars, trucks, furniture, medicine and food products, while Georgia's main exports to Belarus are mineral water, wine and spirits, nuts and re-exports of petroleum products.
20 GEORGIA Country Report May 2018 www.intellinews.com