Page 14 - Caucasus Outlook 2024

programme, including a three-year stand-by arrangement with a $289 million loan, underscore the challenges. This suspension follows disagreements regarding changes in the Georgian National Bank's management structure and its decision to shield a former official close to oligarch Bidzina Ivanishvili from US sanctions. The IMF emphasised the importance of safeguarding the NBG's autonomy for the programme's progress in the country.
2.1.2 External environment
From January to November, Georgia's external trade reached $20 billion, up by 15% from the previous year. Exports grew by 11%, totalling $5,5 billion, and imports increased by 16%, reaching $14 billion. This resulted in a trade deficit of $8 billion, accounting for 43% of the total trade.
In the first 10 months of 2023, the majority of Georgia's exports, accounting for 65%, were destined for Commonwealth of Independent States (CIS) countries. European Union (EU) countries received 12%, leaving the remaining 23% for other regions.
Azerbaijan secured the top spot with a share of 14%, followed by Armenia, Kazakhstan, Kyrgyzstan, and Russia.
Regarding imports, 17% of Georgia's imports originated from Turkey. The United States, Russia, China, and Germany followed as the major contributors to Georgia's import market.
The European Business Association's November 2023 report highlights that despite positive growth in recent years, Georgia has not fully capitalised on the potential of its Deep and Comprehensive Free Trade Area (DCFTA) agreement with the EU.
In 2023 Georgian exports to the EU dropped by 15%, resulting in a market share of only 12%. This decline is attributed to reduced exports of copper and a drop in exports of nuts and walnuts.
In the third quarter of 2023, Georgia received $316 million in foreign direct investments (FDI), marking a significant decline of $504 million or 61% compared to the same period in the previous year.
14 Central Asia & Caucasus Outlook 2021 www.intellinews.com