The National Statistics Office (Geostat) has published a report on foreign trade. According to the document, the value of goods exported from Georgia abroad in August amounted to $ 292.4 million, which is GEL900 million. Due to the economic crisis of COVID-19, the volume of Georgian exports has decreased by $ 23.7 million, or 7.5%, in annual terms.
Foreign trade turnover down by 16.7% in Jan-August 2020
By Natalia Kochiashvili
Wednesday, September 16
A report released on 14th of September shows that the decline in exports was due to a larger drop in imports. Compared to 2019, imports are down by 19.3% or $ 153.8 million, to $ 643.3 million. A report released by Geostat shows that, like imports, exports have declined.
Georgia’s foreign trade turnover in the first 8 months of 2020 decreased by 16.7%, compared to the same period last year, amounting to $7.02 billion, according to the preliminary figures.
In January-August, exports were $ 2.07 billion (down 14.7%) and imports were $ 4.95 billion (down 17.5%). The negative trade balance in January-August 2020 was $ 2.88 billion and accounted for 41 %of foreign trade turnover.
The decline in export and import of which goods has led to the decline in foreign trade will be published by Geostat on September 21.
The volume of remittances in the country in August 2020 amounted to $ 184.2 million (GEL 566.2 million), which is 25.8% ($ 37.8 million) more than the same period in August 2019. It is one of the largest remittances in Georgia. The larger remittances were in July only- $ 188.7 million.
According to National Bank statistics, most of the money was still transferred from Russia, amounting to $ 34.94 million (increase of 1.48% over the previous year). The full statistics by countries are as follows:
2) Italy $ 27.95 million, an increase of 35.92%;
3) US $ 22.05 million, an increase of 45.80%;
4) Greece $ 20.64 million, an increase of 40.12%;
5) Israel $ 14.30 million, an increase of 187.06%;
6) Turkey $ 9.65 million, an increase of 21.73%;
7) Azerbaijan $ 6.96 million, an increase of 269.82%;
8) Germany $ 6.86 million, an increase of 62.43%;
9) Spain $ 5.11 million, an increase of 20.76%;
10) France $ 2.81 million, an increase of 9.86%;
11) Poland $ 2.67 million, a decrease from the previous year -14.80%;
12) Canada $ 1.83 million, an increase of 41.97%;
13) UK $ 1.79 million, an increase of 37.52%;
14) Kazakhstan $ 1.63 million, a decrease -36.35%;
15) Ireland $ 1.41 million, an increase of 89.80%.
In August 2020, $23.1 million (GEL71.1 million) was sent abroad from Georgia, which is 21.5% more than in the same period of August 2019 ($19 million).
Remittances, along with foreign direct investment and exports, are an important part of foreign exchange inflows to Georgia. In the first 8 months of 2020, a total of $ 1.14 billion was transferred to Georgia in remittances, which is $ 34.9 million (3.1%) more than in 2019.
According to the World Bank, Georgia ranks 24th in the world in terms of remittances. 11.6% of the country's economy is generated by remittances sent by Georgian citizens working abroad. Without these funds, the size of the country’s local demand would have been much smaller.