Page 28 - GEORptJul22

Georgian exports increased by 26% y/y in March
Number of Georgian companies exporting to EU up 70%
freshwater - $41.1mn; alcoholic beverages $40.1mn; knitwear $35.3mn; hazelnuts and other nuts $35.2mn and other goods $742mn.
As for imports, the largest commodity groups were oil and oil products $461.2mn; passenger cars - $454.7mn; Copper ores and concentrates – $371.8mn; Petroleum gases and other gaseous hydrocarbons $221.2mn; prepackaged medicines $155.96mn; telephone sets $102.1mn; computers and blocks to them $77.2mn; carbon steel bars, no further processing $45.2mn; bulldozers, motor graders, excavators, rollers $38.4mn; new rubber pneumatic grips and tires $36.3mn; other goods $2.85bn.
Georgian exports increased by 26.3% y/y in March, while PPI was up 19.3% y/y, brokerage Galt & Taggart reported.
In March, Georgia’s exports growth remained strong, growing by 26.3% y/y to $411.4mn, but slowed compared to the 60.3% y/y growth in the previous month. Imports growth also slowed to 15.3% y/y, after growing 54.0% y/y in the previous month. As a result, the trade deficit growth slowed also, up 7.4% y/y to $482.6mn, after a 49.6% y/y growth a month before.
Overall, in 1Q22, the trade deficit was up 30.3% y/y to $1.5bn, as exports increased by 43.3% y/y to $1.2bn, while imports were up by 35.7% y/y to $2.7bn.
Russia invaded Ukraine on February 24. Ukraine and Russia are Georgia's largest trading partners. In 2021, Ukraine ranked fifth among Georgia's top export destinations, while Russia was the country's second-largest trading partner in terms of total trade, exports and imports.
The number of Georgian companies exporting to the European Union in 2021 increased by more than 70% compared to the figure before the 2014 signing of the Association Agreement (AA), Deputy Economy Minister Genadi Arveladze told parliament on 22 March, according to Georgian website Agenda.ge.
Arveladze said the increase had meant 962 companies were involved in exporting to the EU, adding the Deep and Comprehensive Free Trade Area (DCFTA) agreement had made a “significant contribution” to the growth of foreign trade and exports in Georgia.
He added that Georgia’s turnover with the EU had grown by 19% last year and totalled 21% of the country’s total trade turnover, adding exports from Georgia to the EU market had increased by 3%, and represented17% of Georgian exports.
28 GEORGIA Country Report July 2022 www.intellinews.com