Georgia’s Top 10 Exports

Georgia’s Top 10 Exports

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Strategically located at the crossroads between Eastern Europe and Western Asia, the nation of Georgia shipped US$2.3 billion worth of goods around the globe in 2017, down by -20.3% since 2013 but up by 9.7% from 2016 to 2017.

Based on estimates from the Central Intelligence Agency’s World Factbook, Georgia’s exported goods plus services represent 52.5% of total Georgian economic output or Gross Domestic Product. The analysis below focuses on exported products only.

From a continental perspective, 51.1% of Georgian exports by value are delivered to other European countries while 41.6% are sold to Asian importers. Georgia ships another 5.7% worth of goods to North America, with just 1.3% arriving in Africa.

Given Georgia’s population of 4.9 million people, its total $2.3 billion for 2017 exports translates to roughly $470 for every resident in that Middle Eastern country.

Georgia’s unemployment rate was an estimated 11.8% in 2017 according to Trading Economics.

Georgia’s Top 10 Exports

Top 10

The following export product groups represent the highest dollar value in Georgian global shipments during 2017. Also shown is the percentage share each export category represents in terms of overall exports from Georgia.

  1. Ores, slag, ash: US$414.1 million (17.9% of total exports)
  2. Beverages, spirits, vinegar: $382.2 million (16.5%)
  3. Iron, steel: $373.3 million (16.1%)
  4. Pharmaceuticals: $192 million (8.3%)
  5. Mineral fuels including oil: $109.2 million (4.7%)
  6. Fruits, nuts: $102.8 million (4.4%)
  7. Fertilizers: $93.2 million (4%)
  8. Gems, precious metals: $68.4 million (3%)
  9. Knit or crochet clothing, accessories: $52.3 million (2.3%)
  10. Machinery including computers: $52.2 million (2.3%)

Georgia’s top 10 exports accounted for almost four-fifths (79.4%) of the overall value of its global shipments.

Iron and steel was the fastest-growing among Georgia’s top 10 export categories, up 82.6% from 2016 to 2017.

In second place for improving export sales was mineral fuels including via a 75.3% improvement. That gain was spearheaded by higher international sales of crude oil and, to a lesser extent, refined petroleum oils.

Pharmaceuticals from Georgia posted the third-fastest gain in value (up 61.6%) followed by machinery including computers (up 57.2%).

Advantages

The following types of Georgian product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.

In a nutshell, net exports is the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.

  1. Ores, slag, ash: US$394.6 million (Reversing a -$395,000 deficit in 2016)
  2. Beverages, spirits, vinegar: $340.4 million (Up by 46.1% since 2016)
  3. Iron, steel: $189.2 million (Up by 266.2%)
  4. Fertilizers: $76.4 million (Up by 54.6%)
  5. Gems, precious metals: $62.8 million (Down by -22.8%)
  6. Fruits, nuts: $54.9 million (Down by -64.9%)
  7. Live animals: $29.7 million (Down by -18.5%)
  8. Copper: $11.4 million (Up by 305%)
  9. Lead: $6.5 million (Up by 11.5%)

Georgia has highly positive net exports in the international trade of ores, slag and ash. In turn, these cashflows indicate Georgia’s strong competitive advantages under the ores, slag and ash category and in particular for copper.

Opportunities

Overall Georgia incurred a -$5.6 billion trade deficit during 2017 up 8.5% from -$5.1 billion one year earlier.

Below are exports from Georgia that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Georgia’s goods trail Georgian importer spending on foreign products.

  1. Pharmaceuticals: -US$1.3 billion (Up by 547.4% since 2016)
  2. Mineral fuels including oil: -$1.3 billion (Up by 29.3%)
  3. Machinery including computers: -$565 million (Down by -27%)
  4. Electrical machinery, equipment: -$507.1 million (Down by -8.3%)
  5. Plastics, plastic articles: -$236.1 million (Up by 4%)
  6. Articles of iron or steel: -$229.1 million (Down by -12.6%)
  7. Cereals: -$172 million (Up by 69.2%)
  8. Furniture, bedding, lighting, signs, prefab buildings: -$136.7 million (Up by 9.5%)
  9. Salt, sulphur, stone, cement: -$118.9 million (Up by 123%)
  10. Paper, paper items: -$97.2 million (Up by 10.9%)

Georgia has highly negative net exports and therefore deep international trade deficits for pharmaceuticals.

These cashflow deficiencies clearly indicate Georgia’s competitive disadvantages in the international pharmaceuticals market, but also represent key opportunities for Georgia to improve its position in the global economy through focused innovations.

Companies

Georgian Export Companies

Given the country’s tiny size, it should come as no surprise that not one Georgian corporation ranks among Forbes Global 2000.

Wikipedia does list a group of Georgian companies which gives some insight into the types of exports shipped from Georgia. Selected examples are shown below:

  • Badagoni Wine Company (wine producer)
  • Georgian Industrial Group (energy products)
  • Kutaisi Auto Mechanical Plant (trucks, automotive parts)
  • MagtiCom Ltd (telecommunications)
  • JSC RMG Copper (copper, gold)
  • Rustavi Steel (steel products)
  • JSC Tbilaviamsheni (aerospace products)
  • Wissol Petroleum (oil, gas)


 

Georgia’s capital and largest city is Tbilisi.

Please note that the results listed above are at the 2-digit Harmonized Tariff System code level.

See also Georgia’s Top 15 Trading Partners, and 20 Most Valuable Georgian Export Products

Research Sources:
Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on February 10, 2018

International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on February 10, 2018

Investopedia, Net Exports Definition. Accessed on February 10, 2018

The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on February 10, 2018

Trade Map, International Trade Centre. Accessed on February 10, 2018

Wikipedia, Georgia (country). Accessed on February 10, 2018

Wikipedia, List of Companies of Georgia (country). Accessed on February 10, 2018