The Eurasian country formally called the Republic of Georgia exported US$3.8 billion worth of goods around the globe in 2019. That dollar amount reflects a 71.1% gain since 2015 and a 12.4% increase from 2018 to 2019.
Applying a continental lens, half of Georgia’s exports by value were delivered to Asian countries while 45.2% were sold to importers in Europe. Georgia shipped another 3.6% worth of goods to North America.
Smaller percentages went to Latin America (0.8%) excluding Mexico but including the Caribbean, Africa (0.4%) then Oceania (0.04%) led by Australia.
Georgia’s Top 15 Trading Partners
Below is a list showcasing 15 of Georgia’s top trading partners, countries that imported the most Georgian shipments by dollar value during 2019. Also shown is each import country’s percentage of total Georgian exports.
- Azerbaijan: US$498.7 million (13.2% of Georgia’s total exports)
- Russia: $497.1 million (13.2%)
- Armenia: $412.2 million (10.9%)
- Bulgaria: $284.2 million (7.5%)
- Ukraine: $244.7 million (6.5%)
- China: $227.6 million (6%)
- Turkey: $202.4 million (5.4%)
- Romania: $178 million (4.7%)
- United States: $131.8 million (3.5%)
- Uzbekistan: $89.1 million (2.4%)
- Switzerland: $83 million (2.2%)
- Kyrgyzstan: $71.5 million (1.9%)
- Iran: $71.2 million (1.9%)
- Kazakhstan: $68.3 million (1.8%)
- United Arab Emirates: $65.2 million (1.7%)
Over four-fifths (82.9%) of Georgian exports during 2019 were delivered to the above 15 trade partners.
Romania increased purchases of products shipped from Georgia at the fastest pace via an 207.7% increase from 2018 to 2019. Other leading gains for these top 15 customers belong to Kyrgyzstan (up 153.3%), Armenia (up 48.4%), United Arab Emirates (up 43.3%), Ukraine (up 39.8%) then China (up 14.9%).
Five leading import customers cut back on their purchases of goods exported from Georgia namely Kazakhstan (down -24.8%), United States (down -17.6%), Turkey (down -13%), Iran (down -4%) and Azerbaijan (down -0.7%).
Overall, Georgia incurred a -$5.3 billion trade deficit during 2019 down -8.3% from -$5.8 billion in red ink one year earlier.
As defined by Investopedia, a country whose total value of all imported goods is higher than its value of all exports is said to have a negative trade balance or deficit.
It would be unrealistic for any exporting nation to expect across-the-board positive trade balances with all its importing partners. Similarly, that export country doesn’t necessarily post a negative trade balance with each individual partner with which it exchanges exports and imports.
Georgia incurred the highest trade deficits with the following countries.
- Turkey: -US$1.4 billion (country-specific trade deficit in 2019)
- China: -$631 million
- Russia: -$478.8 million
- Germany: -$388.7 million
- United States: -$258.2 million
- Italy: -$186 million
- Japan: -$183.1 million
- Ukraine: -$170.1 million
- Netherlands: -$139.7 million
- Poland: -$136.2 million
Among Georgia’s trading partners that cause the greatest negative trade balances, Georgian deficits with Japan (up 168.3%), United States (up 29.1%) and Turkey (up 13.8%) grew at the fastest pace from 2018 to 2019.
These cashflow deficiencies clearly indicate Georgia’s competitive disadvantages with the above countries, but also represent key opportunities for Georgia to develop country-specific strategies to strengthen its overall position in international trade.
Based on Investopedia’s definition of net importer, a country whose total value of all imported goods is lower than its value of all exports is said to have a positive trade balance or surplus.
Georgia incurred the highest trade surpluses with the following countries.
- Bulgaria: US$160.3 million (country-specific trade surplus in 2019)
- Armenia: $144.8 million
- Uzbekistan: $72.7 million
- Kyrgyzstan: $68.4 million
- Kazakhstan: $38.9 million
- Switzerland: $24.6 million
- Iraq: $13.9 million
- Tajikistan: $8.7 million
- Lithuania: $8.7 million
- Kuwait: $5.3 million
Among Georgia’s trading partners that generate the greatest positive trade balances, Georgian surpluses with Kuwait (up 216.3%), Kyrgyzstan (up 164.8%) and Switzerland (up 114.8%) grew at the fastest pace from 2018 to 2019.
In addition, Georgia’s trade with Armenia went from a -$57.5 million deficit in 2018 to a $144.8 million surplus one year later.
These positive cashflow streams clearly indicate Georgia’s competitive advantages with the above countries, but also represent key opportunities for Georgia to develop country-specific strategies to optimize its overall position in international trade.
Companies Servicing Georgian Trading Partners
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)
See also Georgia’s Top 10 Exports and Top EU Export Countries
Central Intelligence Agency, Country Profiles, The World Factbook. Accessed on March 3, 2020
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on March 3, 2020
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on March 3, 2020
International Trade Centre, Trade Map. Accessed on March 3, 2020
Investopedia, Net Exports Definition. Accessed on March 3, 2020
Wikipedia, Georgia (country). Accessed on March 3, 2020
Wikipedia, List of Companies of Georgia (country). Accessed on March 3, 2020
Wikipedia, Purchasing power parity. Accessed on March 3, 2020