ICC-Georgia in partnership with EBIT Group published a report on the Foreign Economic Dependence Index of Georgia, noting that Georgia’s foreign economic activity expanded notably in the second quarter of 2025, with the country’s Foreign Economic Dependence Index rising from 9.27 million to 10.23 million. The growth was driven by a surge in exports, booming tourism revenues, and a sharp rebound in foreign direct investment, even as money flows into the country declined. These trends highlight Georgia’s increasing integration into global markets, with shifting dynamics across its key trading partners.
Detailed Analysis by Country:
European Union (EU)
- Imports rose from 1,001,506 to 1,136,205, and exports slightly increased to 187,464.
- Money flow, tourism, and FDI all expanded, highlighting strengthening ties.
Russia
- Imports fell to 436,480, while exports rose to 202,510.
- Tourism income grew significantly to 269,500, though money flow dropped sharply to 112,848.
- FDI increased modestly, underscoring Russia’s continued importance despite volatility.
Turkey
- Imports and exports both grew, reaching 698,217 and 93,804 respectively.
- Tourism income slightly declined, and money flow contracted steeply to just 7,620.
- FDI nearly doubled, pointing to stronger investment ties despite mixed trade-financial dynamics.
Azerbaijan
- Exports rose to 201,425, while imports dropped to 117,006.
- Tourism income increased, but FDI and money flow weakened.
Overall, Georgia’s trade position improved, though investment activity softened.
Armenia
- Exports rose to 133,824, while imports fell slightly.
- Tourism income declined, and FDI dropped marginally.
- Stronger trade contrasts with weaker services and investment activity.
China
- Imports and exports surged, with exports more than doubling to 122,587.
- FDI dropped into negative territory (-3,738), indicating a pullback from Chinese investors.
- No tourism income recorded.
Iran
- Both imports and exports declined.
- Tourism remained negligible.
- FDI improved from negative to positive, reflecting limited but positive investment flows.
Israel
- Imports and exports decreased, while money flow, tourism, and FDI all rose.
- Tourism income increased sharply to 84,600, signaling stronger visitor flows.
Japan
- Imports and exports both grew, but money flow declined.
- FDI remained negative, though improving from -37,925 to -7,140.
- Tourism remained absent.
Kazakhstan
- Imports and exports rose substantially, alongside strong growth in tourism income (184,200).
- FDI decreased, suggesting some investor caution despite stronger trade ties.
Ukraine
- Imports increased to 68,672, but exports fell slightly.
- FDI nearly doubled, while money flow worsened.
- Tourism remained negligible.
United Kingdom
- Imports collapsed to 78,234, but exports doubled.
- FDI rebounded strongly from negative (-56,948) to a major inflow (242,705), showing renewed investor confidence.
United States
- Imports declined, while exports nearly doubled.
- Money flow increased, but FDI turned negative (-581), pointing to investor retreat despite stronger trade.
Other Countries
- Imports and exports expanded strongly, while tourism revenue surged to 398,900.
- FDI jumped from 8,034 to 83,021, making this group a significant driver of overall foreign engagement.
Between Q1 and Q2 2025, Georgia deepened its foreign economic engagement, with rising exports, growing tourism income, and a strong rebound in foreign investment. However, challenges persist, including reduced money flow and uneven country-level performance.
The index is calculated by aggregating five key parameters for each country: Imports, Exports, Money Flow, Foreign Direct Investment (FDI), and Income from Foreign Travel.
