Georgia's foreign trade in first half up 21.3% y/y

Georgia's foreign trade in first half up 21.3% y/y
Georgia's foreign trade turnover recovered to pre-crisis levels in Jan-Jun this year, and its trade deficit was slightly smaller - yet some 15% of full year's GDP.
By bne IntelIiNews July 14, 2021

Georgia's foreign trade in the first six months of 2021 increased by over one-fifth year-on-year, Geostat reported on July 13.

Furthermore, it was 0.5% above the pre-coronavirus crisis trade turnover seen in H1 2019.

Compared to the first half of 2019, Georgia’s exports increased and imports decreased, resulting in a slightly smaller trade deficit - which has not improved significantly the country’s dependence on wage remittances and tourism revenues. The slight narrowing of the trade gap (goods) was no surprise given subdued domestic demand correlated with scarce revenues from pandemic-hit tourism. The central bank's defence of the exchange rate and steady wage remittances maintained net imports at high levels, though.

In January-June this year, the foreign trade turnover was $6.2bn – an increase of 21.3% compared to the same period of last year.

Exports increased by 25.5% y/y reaching $1.9bn (+5.5% versus H1, 2019), while imports increased by 19.5% y/y (-1.6% versus H1, 2019) to $4.3bn.

Meanwhile, the trade deficit widened by 15% y/y at $2.4bn and it was 6.5% smaller than in the same period of 2019. As a share of GDP, the trade gap already neared 15% in the first half of the year.