Georgia’s exports went up by 25% y/y in June

Georgia’s exports went up by 25% y/y in June
By bne IntelliNews July 14, 2022

Georgia exported $439mn of goods in June, marking a y/y 25% increase compared to the same time in 2021, according to the National Statistics Office of Georgia.

Imports grew by 21% y/y and reached $1.05bn in June.

The trade deficit consequently widened by 19% y/y to $609mn in the month.

The detailed foreign trade data will be published on July 19.

In Q2, Georgia’s exports, dominated by copper ores and concentrates and ferro-alloys, increased by 29% y/y to $1.38bn - after a stronger annual growth rate of 43% y/y in Q1.

However, compared to Q2 of the year 2019, before the pandemic, Georgia’s exports rose by 43% – at a rate close to that seen in Q1 (+42% versus Q1, 2019).

Besides the traditional categories of exports, which performed well in January-May and posted annual growth rates of 42% and 98% respectively, the exports of nitrogenous fertilisers have increased as well in the five-month period. Namely, the exports of fertilisers more than tripled from $46mn to $153mn in January-May (7% of total exports).

Higher commodity prices have pushed up Georgia’s imports as well.

The robust local currency, which is slightly strengthening versus the US dollar, is conductive to local demand and apparently hasn’t impacted the main categories of exports.

Thus, Georgia’s imports in the second quarter of the year rose by 31% y/y to $3.14bn.

Compared to Q2 2019, the country’s imports rose by 36% – slightly slower compared to the exports’ 43% advance over the past three years.

Imports of crude oil and petroleum products rose by 80% y/y in January-May, while the imports of natural gas rose by 40%. Altogether, the two categories accounted for over 15% of total imports.