19.Nov .2019 17:54

Mikabadze: the government is actively working on export growth and diversification

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In October 2019, export volume reached 316.5 million USD, which exceeds by 4.5% comparing to the corresponding period of the previous year. According to figures released by the National Statistics Office, imports dropped 2.1 per cent in October, amounting 847.6 million USD. Consequently, trade deficit was 32.2 million USD in October and the rate improved by 531.1 million USD.

As for January-October, 2019, exports increased by 10.4% to 3 035.7 million USD. Imports were 3.1% down y-o-y and amounted to 7 331.2 million USD in January-October.

According to information released by Geostat, the trade deficit in January-October 2019 was 517.5 million USD, amounting to 4 295.5 million USD. In January-October, the trade deficit amounted to 41.4 per cent of foreign trade turnover - up 5.3 percentage points from the previous year.

Export increase is fixed to the EU countries in January-October, 2019 - Georgia's exports increased by 14.2% to 685.2 million USD i.e. 22.6% of the country's total exports.

It is noteworthy that in 2018, exports increased by 22.7 percent to 3 355.7 million USD, while the import was 15 per cent higher comparing to the previous year and amounted to 9 136.0 million USD.

Ekaterine Mikabadze, First Deputy Minister of Economy and Sustainable Development of Georgia estimates that the trade deficit is significantly improved.

“Successfully completed free trade negotiations are assisting expand of the markets for Georgian products and create the potential for further growth in export. However, the steps taken by the Government of Georgia to improve the competitiveness of the private sector, as well as to increase access to finance are not less important - all of these promote the benefits of free trade agreements, "Ekaterine Mikabadze said.

According to Geostat, in January-October 2019 export of copper ores and concentrates significantly increased equaling to 24.7%, motor cars totaled 65.4%, medicines 23.7%, mineral and waters, natural or artificial mineral – 24.6% and wine of fresh grapes (12.7%). As for the import in the same period – import of copper ores and concentrates has increased (47.1%), motor cars – 5.1%, Ferro-alloys – 9.8% and medicines – 7.0%.