ICC Georgia, in collaboration with Ebit Group, has released its Foreign Economic Dependence Index for Q1 2025, revealing a significant rise in Georgia’s reliance on external economic factors. The index, which includes imports, exports, money flow, foreign direct investment (FDI), and income from foreign travel, rose from $7.6 billion in Q4 2024 to $9.27 billion in Q1 2025.
Key Highlights:
- Imports increased from $4.7 billion to $5.3 billion, while exports declined from $1.77 billion to $1.58 billion.
- Money flow surged significantly from $729 million to $1.33 billion.
- FDI dropped from $367 million to $179 million.
- Tourism income declined from $1.07 billion to $832 million.
According to the report, the increase in the overall index signals deeper foreign economic integration, particularly through trade and capital movement, despite declining FDI and tourism revenues.
Detailed Analysis by Country:
European Union (EU):
• Imports: Decreased from 1,370,877 (Q4 2024) to 1,001,506 (Q1 2025)
• Exports: Increased from 183,278 to 185,217
• Money Flow: Decreased from 350,427 to 330,990
• Income from Tourism: Decreased from 65,600 to 64,500
• Foreign Investments: Increased from to 98,673 to 116,315
The European Union (EU*) saw reduced imports, increased exports, and decreased income from tourism, while foreign investments rose. Despite declining money flow, the data reflects evolving economic ties with Georgia.
Russia:
• Imports: Decreased from 535,699 (Q4 2024) to 513,198 (Q1 2025)
• Exports: Decreased from 158,650 to 129,828
• Money Flow: Increased from 83,509 to 643,026
• Income from Tourism: Decreased from 207,700 to 171,800
• Foreign Investments: Increased from 11,229 to 19,157
Unfortunately, Russia remains a significant trading partner for Georgia, but Q1 2025 saw declines across imports, exports and income from tourism. This trend suggests reduced economic engagement, likely influenced by geopolitical tensions and economic policies.
Turkey:
• Imports: Decreased from 781,447 (Q4 2024) to 596,491 (Q1 2025)
• Exports: Decreased from 111,343 to 76,022
• Money Flow: Increased from 4,061 to 83,262
• Income from Tourism: Decreased from 161,400 to 151,900
• Foreign Investments: Increased from 3,797 to 28,122
Turkey experienced declining trade volumes with Georgia, shown by reduced imports and exports. Despite decreased tourism income, rising money flow and foreign investments suggest shifting economic dynamics and long-term cooperation.
Azerbaijan:
• Imports: Decreased from 169,796 (Q4 2024) to 166,421 (Q1 2025)
• Exports: Decreased from 180,270 to 140,335
• Money Flow: Increased from -2,359 to -1,796
• Income from Tourism: Decreased from 29,100 to 14,800
• Foreign Investments: Increased from 22,275 to 25,004
Azerbaijan saw reduced imports, exports and income from tourism. However, rising money flow and increased foreign investments suggest ongoing financial engagement.
Armenia:
• Imports: Decreased from 75,978 (Q4 2024) to 55,016 (Q1 2025)
• Exports: Decreased from 155,387 to 113,789
• Money Flow: Decreased from 741 to 442
• Income from Tourism: Decreased from 62,200 to 58,700
• Foreign Investments: Decreased from 6,404 to 5,334
Armenia experienced decline in both imports and exports with Georgia. Also, in money flow, income from tourism and foreign investments.
China:
• Imports: Decreased from 417,775 (Q4 2024) to 390,670 (Q1 2025)
• Exports: Decreased from 69,610 to 53,733.
• Money Flow: Increased from -726 to -303.
• Income from Tourism: 0
• Foreign Investments: Increased from 6,445 to 11,155.
China showed mixed results with lower imports and exports into Georgia but a slight increase in money flow and foreign investment. Increased money flow suggest ongoing economicinteraction.
Iran:
• Imports: Decreased from 72,226 (Q4 2024) to 65,303 (Q1 2025)
• Exports: Decreased from 14,204 to 9,616
• Money Flow: Decreased from 1 to 0
• Income from Tourism: 0
• Foreign Investments: Decreased from 539 to -620
Iran experienced a broad decline in economic engagement with Georgia, including reduced trade, money flow, income from tourism and foreign investments. This shows weaker
economic relations between the two countries.
Israel:
• Imports: Decreased from 8,151 (Q4 2024) to 5,986 (Q1 2025)
• Exports: Increased from 10,295 to 13,771
• Money Flow: Decreased from 64,167 to 62,540
• Income from Tourism: Decreased from 88,400 to 59,400
• Foreign Investments: Increased from 12,556 to 12,945
Israel had less imports and financial flows into Georgia but increased exports and foreign investments, showing mixed results.
Japan:
• Imports: Decreased from 130,364 (Q4 2024) to 91,927 (Q1 2025)
• Exports: Increased from 656 to 1,080
• Money Flow: Increased from 61 to 70
• Income from Tourism: 0
• Foreign Investments: Decreased from 19,628 to -37,925
Japan experienced an Increase in exports and money flow. However, decreased in imports and foreign investments.
Kazakhstan:
• Imports: Increased from 12,301 (Q4 2024) to 17,478 (Q1 2025)
• Exports: Decreased from 225,021 to 176,154
• Money Flow: Decreased from 18,567 to 14,016
• Income from Tourism: Decreased from 142,500 to 85,200
• Foreign Investments: Increased from 2,633 to 5,395
Kazakhstan experienced Increase in imports and foreign investments. Increasing foreign investments indicates stable economic ties with continued trade expansion in Q1 2025. However, showed decreased exports, money flow and income from tourism.
Despite mixed performance across partner countries, the report concludes that Georgia's economy in Q1 2025 showed increased foreign dependence, primarily due to rising imports and capital inflows, even as FDI and tourism weakened.
