The International Chamber of Commerce in Georgia (ICC Georgia) published Georgia’s Foreign Economic Dependence Index (GFEDI). According to the document, despite geopolitical tensions, economic ties between Georgia and Russia remain robust, driven by factors such as geographical proximity, historical relations, and complementary economic interests.
Trade between Georgia and Russia saw significant growth in 2023. Both imports and exports experienced notable increases, with total trade volumes reaching 1,744,641 units and 657,045 units, respectively, compared to 1,835,412 units and 651,628 units in 2022.
European Union (EU):
In 2023, Georgia's trade relations with the EU demonstrated mixed dynamics. While exports to the EU slightly decreased from 862,782 units in 2022 to 704,427 units in 2023, imports surged significantly from 3,049,051 units to 3,809,558 units. The increase in imports from the EU reflects growing economic cooperation and integration efforts, presenting opportunities for Georgia to benefit from market access.
Azerbaijan:
Trade between Georgia and Azerbaijan remained robust in 2023. Both imports and exports saw notable increases, with total trade volumes reaching 655,957 units and 862,070 units, respectively, compared to 642,078 units and 672,628 units in 2022.
The strengthening of trade ties between Georgia and Azerbaijan underscores the importance of regional economic cooperation and infrastructure development initiatives.
Armenia:
Georgia's economic relations with Armenia witnessed fluctuations in 2023. While imports increased slightly from 613,190 units to 335,733 units, exports surged signifi cantly from 584,580 units to 786,887 units.
China:
Georgia's trade with China saw notable growth in 2023. Total trade volumes increased to 1,328,057 units and 310,873 units for imports and exports, respectively, compared to 1,125,965 units and 736,838 units in 2022.
The expansion of trade with China highlights Georgia's efforts to diversify its trade partnerships and tap into the vast Chinese market.
Iran:
Trade between Georgia and Iran remained relatively stable in 2023. While imports increased slightly from 231,569 units to 241,076 units, exports experienced a marginal decrease from 29,700 units to 30,133 units.
Despite geopolitical challenges, Georgia's trade relations with Iran continue to pro vide avenues for economic cooperation and exchange.
Israel:
Georgia's economic relations with Israel saw notable growth in 2023. Total trade vol umes increased to 16,202 units and 20,655 units for imports and exports, respective ly, compared to 16,454 units and 22,034 units in 2022.
The increase in trade with Israel reflects the strengthening of bilateral ties and cooperation in various sectors, including technology, agriculture, and tourism.
Japan:
Georgia's trade with Japan experienced fluctuations in 2023. While imports increased significantly from 307,144 units to 599,801 units, exports saw a substantial decrease from 14,984 units to 9,047 units.
The increase in imports from Japan may be attributed to growing demand for Japa nese goods and technology in Georgia, while the decrease in exports highlights the need for enhanced market access and promotion of Georgian products in Japan.
Kazakhstan:
Georgia's economic relations with Kazakhstan witnessed mixed dynamics in 2023. While imports decreased slightly from 36,391 units to 32,927 units, exports surged significantly from 238,173 units to 702,965 units.
The increase in exports to Kazakhstan reflects Georgia's efforts to tap into the Cen tral Asian market and capitalize on the growing demand for Georgian products in the region.
Turkey:
Georgia's economic relations with Turkey witnessed significant growth in 2023. Total trade volumes increased to 2,573,256 units and 417,308 units for imports and exports, respectively, compared to 2,370,933 units and 435,485 units in 2022. The strengthening of trade ties between Georgia and Turkey underscores the importance of regional economic integration and cooperation in the Caucasus and Black Sea region.
Ukraine:
Georgia's trade relations with Ukraine experienced fluctuations in 2023. While imports increased slightly from 274,890 units to 258,505 units, exports saw a nota ble decrease from 232,078 units to 101,256 units.
The decrease in exports to Ukraine highlights the need for targeted efforts to enhance market access and competitiveness for Georgian products in the Ukraini an market.
United Kingdom (UK):
Georgia's economic relations with the United Kingdom demonstrated mixed dynamics in 2023. While imports increased slightly from 107,596 units to 146,912 units, exports decreased significantly from 15,720 units to 12,437 units. The fluctuations in trade with the UK may be attributed to factors such as Brexit-re lated uncertainties and changes in consumer preferences.
United States (US):
Georgia's trade with the United States experienced fluctuations in 2023. While imports increased significantly from 941,323 units to 1,929,792 units, exports saw a notable decrease from 265,060 units to 96,987 units.
The increase in imports from the US may be driven by growing demand for Ameri can products in Georgia, while the decrease in exports highlights the need for tar geted efforts to enhance market access and promote Georgian products in the US market.
Georgia’s Foreign Economic Dependence Index (GFEDI) is prepared by the International Chamber of Commerce in Georgia (ICC-Georgia), and will be computed quarterly to monitor on regular basis the foreign economic dependence of Georgia.
