LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

( in percent of total 1998 1999 2000 2001 2002 2003 2004 2005
Export 100 100 100 100 100 100 100 100
Russia 29,1 20,8 20,8 23,3 17,7 18,2 16,2 17,8
Turkey 11,3 15,4 22,6 22,0 15,5 17,9 18,3 14,1
Azerbaijan 7,5 4,3 6,2 3,1 8,5 3,6 3,9 9,6
Armenia 9,7 6,6 4,2 3,9 5,8 6,7 8,4 4,6
Germany 6,7 11,0 10,6 2,4 1,6 2,1 2,5 3,3
Unites States 5,9 4,4 2,2 2,8 3,9 3,3 3,3 3,1
Italy 5,0 4,7 3,7 2,7 2,2 1,9 1,8 3,9
Ukraine 3,9 4,6 3,4 3,6 3,7 6,5 2,4 4,4
France 3,3 0,3 0,3 0,1 0,9 1,1 1,5 1,3
Switzerland 2,9 2,5 4,1 4,9 7,0 7,2 2,7 0,4
Netherlands 1,8 1,0 0,6 1,1 1,3 2,1 1,5 1,3
Bulgaria 1,7 0,2 0,7 0,2 0,0 0,0 2,4 4,9
Others 11,1 24,2 20,4 29,9 32,0 29,4 35,1 31,4
The main market for Georgian products is still the CIS. Turkey is a destination for 16% of
Georgian exports. The EU’s share is about same. During the past few years the CIS and
the EU have accounted for more than 70% of Georgia’s registered imports. Turkey has
accounted for another 10%. Imports from the USA were relatively small.
Several factors and parameters related to the prospective economic development of the
country provide sufficient grounds for dynamic expansion of export and import flows in
Georgia.
However, Georgia needs to diversify its export markets, which seems eminently possible
through full utilisation of its multilateral and bilateral trade arrangements as well as
through the production of internationally competitive products.
In 2005, the foreign trade turnover was USD 3,357.6 million, which is 34.6% more than in
2004. Export was USD 866.7 million (increased with 34.0%) and import USD 2,490.9
million (increased with 34.8%). The negative trade balance increased with 35.2% to USD
-1,624.2 million.
In 2005 Georgia had a negative trade balance with 101 partner states (104 in 2004), with
a combined trade deficit of USD 1,687.5 million (USD 1,321.4 in 2004). A positive trade
balance was recorded with 31 states (21 in 2004), with a total surplus of USD 63.3 million
(in 2004 USD 120.5 million).
In 2005 the share of foreign trade with CIS countries increased. The foreign trade
turnover with CIS countries reached USD 1,406.1 million (42.8% higher than in 2004) and
was 41.9% of total trade turnover. The foreign trade turnover with EU countries was USD
836.7 million, which is 14.8% higher than last year’s. The trade turnover with EU countries
was 24.9% of the total trade turnover.
Russia is the most important trade partner of Georgia. In 2005, the trade turnover with
Russia increased with 48.6% and reached USD 538.3 million, which is 16.0% of the total
foreign trade turnover. The next important partners are Turkey (12.1% of foreign trade),
Azerbaijan (9.4%) and Ukraine (7.7%).
No significant changes occurred last year in the export-import commodity structure.
In export, the most important commodities were black scrap metals (with a share in total
export of 9.7%), natural wine (9.4%), ferroalloys (9.3%), nuts (8.1%) and aircrafts (8.0%).
In import, the most important commodities were oil and oil products (13.5%), followed by
automobiles (7.2%).