Mikabadze: Trade Growth and Diversification Protects Georgia’s Economy

Ekaterine Mikabadze, Deputy Minister of Economy and Sustainable Development, released a statement yesterday explaining the ministry’s strategy on international trade.

"In recent years, significant steps have been taken to diversify foreign trade, which has changed the export structure. The EU market has substantially replaced the CIS market for exports. In January-July, the European Union's share of Georgian exports reached 22.3%, a 20.2% increase,” said Mikabadze.

According to Geostat data, in July 2018, exports grew 31% year on year. Exports to the United States of America, another important trading partner, reached $278.5 million. Total exports for July increased by 21.8% to $781.8 million.

The total export index also increased in January-July 2018, seeing 28.8% growth to $1,871 million. Imports in the same period were 22.9% higher than January-July 2017, at a total of $5,180.8 million. Total foreign trade turnover was $7,051.8 million – 24.4% higher than the previous year.

Mikabadze reported that the export growth is attributable in part to factors contributing to increased foreign demand for goods exported from Georgia. She said that the largest export growth year on year by sector was in copper ores and concentrates (13.2%), passenger cars (98.4%), nitrogenous fertilizers (42.1%), wine (25.7%), and other alcoholic beverages (23.6%).

"The Government of Georgia is actively working to further grow and diversify exports. Successful negotiations of free trade agreements support the expansion of the market of Georgian products and create additional export potential,” said Mikabadze.

By Samantha Guthrie

Photo: Ministry of Economy and Sustainable Development