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$2.5 billion worth of goods around the globe in 2018. That dollar amount reflects a -11.3% dip since 2014 and a -7% reduction from 2017 to 2018.

Based on estimates from the Central Intelligence Agency’s World Factbook, Georgia’s exported goods plus services represent 50.4% of total Georgian economic output or Gross Domestic Product. That metric includes re-exports. Also, please note that the analysis below focuses on exported products only.

From a continental perspective, 51.4% of Georgian exports by value are delivered to fellow European countries while 40.2% are sold to Asian importers. Georgia ships another 6.6% worth of goods to North America, with just 1% arriving in Latin America (excluding Mexico) plus the Caribbean and another 0.8% going to Africa.

Given Georgia’s population of 4.9 million people, its total $2.5 billion for 2018 exports translates to roughly $520 for every resident in the Middle Eastern country.

Georgia’s unemployment rate was an estimated 13.8% forecast at January 2019 by Trading Economics.

Georgia’s Top 10 Exports

Top 10

The following export product groups represent the highest dollar value in Georgian global shipments during 2018, at the 2-digit Harmonized Tariff System (HTS) code level. Also shown is the percentage share each export category represents in terms of overall exports from Georgia.

Drilling down to the more detailed 4-digit HTS codes, Georgia’s most valuable exported goods are copper, ferro-alloys, motor cars, wine then drugs and medicines.

  1. Ores, slag, ash: US$503.8 million (19.8% of total exports)
  2. Beverages, spirits, vinegar: $435.6 million (17.2%)
  3. Iron, steel: $413.2 million (16.3%)
  4. Pharmaceuticals: $112.8 million (4.4%)
  5. Mineral fuels including oil: $104.5 million (4.1%)
  6. Fertilizers: $102.6 million (4%)
  7. Fruits, nuts: $78.6 million (3.1%)
  8. Gems, precious metals: $73.8 million (2.9%)
  9. Machinery including computers: $69.4 million (2.7%)
  10. Knit or crochet clothing, accessories: $53.4 million (2.1%)

Georgia’s top 10 exports accounted for over three-quarters (76.7%) of the overall value of its global shipments.

Fertilizers was the fastest-growing among Georgia’s top 10 export categories, up 33.5% from 2017 to 2018.

In second place for improving export sales was the ores, slag and ash category via its 18.7% improvement. That gain was spearheaded by higher international sales of copper and manganese ores and concentrates.

Iron and steel shipments from Georgia posted the third-fastest gain in value (up 12%) followed by the beverages, spirits and vinegar category (up 4.4%).

Leading Georgia’s decliners was fruits and nuts (down -26.6%) and pharmaceuticals (down -26%).

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 represent 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$455.2 million (Up by 615.3% since 2017)
  2. Beverages, spirits, vinegar: $391 million (Up by 16.9%)
  3. Iron, steel: $140.5 million (Down by -28.7%)
  4. Fertilizers: $87.3 million (Up by 43.5%)
  5. Gems, precious metals: $67 million (Down by -5.2%)
  6. Fruits, nuts: $22.1 million (Down by -59%)
  7. Live animals: $13.9 million (Down by -53.7%)
  8. Copper: $10.6 million (Down by -15.5%)
  9. Inorganic chemicals: $7.8 million (Up by 311.4%)
  10. Lead: $6.6 million (Down by -5.7%)

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–particularly for copper.

Opportunities

Overall Georgia incurred a -$4.7 billion trade deficit during 2018, down -11.4% from -$5.3 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. Mineral fuels including oil: -US$1.2 billion (Up by 8.3% since 2017)
  2. Machinery including computers: -$740.4 million (Up by 12.7%)
  3. Electrical machinery, equipment: -$522.2 million (Down by -8.6%)
  4. Plastics, plastic articles: -$257.6 million (Up by 3.1%)
  5. Articles of iron or steel: -$221.2 million (Down by -8%)
  6. Cereals: -$174.9 million (Up by 52.7%)
  7. Pharmaceuticals: -$172.2 million (Down by -28.3%)
  8. Furniture, bedding, lighting, signs, prefab buildings: -$127.2 million (Down by -15%)
  9. Optical, technical, medical apparatus: -$118.7 million (Up by 15.6%)
  10. Salt, sulphur, stone, cement: -$114.4 million (Up by 98.5%)

Under the mineral fuels including oil category, Georgia has highly negative net exports and therefore deep international trade deficits for refined oils and petroleum gases.

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.

See also Georgia’s Top Trading Partners

Research Sources:
Forbes 2015 Global 2000 rankings, The World’s Biggest Public Companies. Accessed on January 22, 2019

International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on January 22, 2019

Investopedia, Net Exports Definition. Accessed on January 22, 2019

The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on January 22, 2019

Trade Map, International Trade Centre. Accessed on January 22, 2019

Wikipedia, Georgia (country). Accessed on January 22, 2019

Wikipedia, List of Companies of Georgia (country). Accessed on January 22, 2019