That dollar amount results from a 12.7% gain compared to $2.7 billion 5 years earlier during 2019.
Year over year, the total value of Georgian exports dropped by -21.7% from $3.9 billion starting from 2022.
Based on the average exchange rate for 2023, the Georgian lari appreciated by 6.7% against the US dollar since 2019 and rose by 9.9% from 2022 to 2023. Georgia’s stronger local currency makes its exports paid for in weaker US dollars relatively more expensive for international buyers.
Georgia’s Best Exports Customers
The latest available country-specific data shows that 75.3% of products exported from Georgia was bought by importers in: Russia (18.5% of the Georgian total), Türkiye (10.9%), mainland China (9.6%), Bulgaria (8.2%), Armenia (6.7%), Azerbaijan (5.4%), United States of America (3.1%), Switzerland (2.9%), Ukraine (2.7%), Spain (2.6%), Kazakhstan (2.31%) and Iraq (2.3%).
From a continental perspective, 46.7% of Georgia exports by value was delivered to fellow European countries while 44.4% was sold to importers located in Asia. Georgia shipped another 3.6% worth of goods to buyers in North America.
Smaller percentages went to customers in Africa (2.62%), Latin America (2.56%) excluding Mexico but including the Caribbean, then Oceania (0.1%) almost all Australia.
Given Georgia’s population of 3.74 million people, its total $3.04 billion for 2023 exports translates to roughly $800 for every resident in the country typically associated with the Middle East. That per-capita dollar amount lags the average $1,050 for 2022.
Georgia’s Top 10 Exports
The following export product groups represent the highest dollar value in Georgian global shipments during 2023, at the 2-digit Harmonized Tariff System (HTS) code level. Also shown is the percentage share each export category represents in terms of overall exports from Georgia.
- Beverages, spirits, vinegar: US$670.7 million (22% of total exports)
- Ores, slag, ash: $560.2 million (18.4%)
- Iron, steel: $188.3 million (6.2%)
- Fruits, nuts: $179.9 million (5.9%)
- Fertilizers: $158.8 million (5.2%)
- Live animals: $131.8 million (4.3%)
- Knit or crochet clothing, accessories: $118 million (3.9%)
- Mineral fuels including oil: $110.9 million (3.6%)
- Gems, precious metals: $92.6 million (3%)
- Machinery including computers: $91.5 million (3%)
Georgia’s top 10 exports categories accounted for 75.7% of the overall value of its global shipments.
Live animals was the fastest grower among the top 10 export categories, up by 50.6% from 2022 to 2023.
In second place for improving export sales was machinery including computers via a 42.1% advance.
Georgia’s shipments of beverages, spirits and vinegar posted the third-fastest gain in value, up by 16.6%.
The leading decliner among Georgia’s top 10 export categories were the metals iron and steel thanks to a -63% year-over-year drop.
The above listed product categories are at the 2-digit Harmonized Tariff System (HTS) code level.
Drilling down to the more detailed 4-digit HTS codes, Georgia’s most valuable exported goods are copper ores and concentrates (16.2% of the Georgian total), wine (8.5%), iron ferroalloys (6%), alcoholic beverages including spirits and liqueurs (5.4%), nitrogenous fertilizers (5.2%), mineral and aerated waters (4.3%), non-alcoholic drinks (3.6%) excluding water or juices and milk, unwrought gold (2.9%), miscellaneous nuts (2.8%) then electrical energy (2.6%).
Products Generating Trade Surpluses for Georgia
The following types of Georgian product shipments represent positive net exports or a trade balance surplus. Investopedia defines net exports as the value of a country’s total exports minus the value of its total imports.
In a nutshell, net exports represent the amount by which foreign spending on a home country’s goods or services exceeds or lags the home country’s spending on foreign goods or services.
- Beverages, spirits, vinegar: US$589.6 million (Up by 16% since 2022)
- Ores, slag, ash: $536 million (Down by -50.6%)
- Fertilizers: $123.3 million (Down by -50.2%)
- Fruits, nuts: $98.2 million (Down by -10.9%)
- Gems, precious metals: $76.9 million (Down by -14.7%)
- Live animals: $69.8 million (Up by 25.2%)
- Lead: $8.2 million (Up by 4.5%)
- Inorganic chemicals: $6.8 million (Down by -35.9%)
- Woodpulp: $2.1 million (Down by -16.6%)
- Vegetable plaiting materials: $199,000 (Down by -74.3%)
Georgia has highly positive net exports in the international trade of waters and wine. In turn, these cashflows indicate Georgia’s strong competitive advantages under the beverages, spirits and vinegar product category.
Products Causing Trade Deficits for Georgia
Georgia racked up an overall -US$7.9 billion trade deficit during 2023, expanding by 29.1% from -$6.2 billion in red ink one year earlier in 2022.
Below are exports from Georgia that result in negative net exports or product trade balance deficits. These negative net exports reveal product categories where foreign spending on home country Georgia’s goods trail Georgian importer spending on foreign products.
- Mineral fuels including oil: -US$1.6 billion (Down by -7.9% since 2022)
- Machinery including computers: -$1.1 billion (Up by 20%)
- Electrical machinery, equipment: -$879.8 million (Up by 22.8%)
- Pharmaceuticals: -$446 million (Up by 24.3%)
- Plastics, plastic articles: -$402.1 million (Up by 7.7%)
- Articles of iron or steel: -$377.1 million (Up by 29.5%)
- Furniture, bedding, lighting, signs, prefabricated buildings: -$238 million (Up by 32%)
- Perfumes, cosmetics: -$218.1 million (Up by 30.7%)
- Iron, steel: -$190.2 million (Reversing an -$85.1 million deficit)
- Paper, paper items: -$169.6 million (Up by 1.3%)
Under the mineral fuels including oil category, Georgia has highly negative net exports and therefore deep international trade deficits for particularly refined oils and petroleum gases.
These cashflow deficiencies clearly indicate Georgia’s competitive disadvantages in the international pharmaceuticals market, but also represent key opportunities for Georgia to improve its position in the global economy through focused innovations.
Georgian Export Companies
Given the country’s tiny size, it should come as no surprise that not one Georgian corporation ranks among Forbes Global 2000.
Wikipedia does list a group of Georgian companies which gives some insight into the types of exports shipped from Georgia. Selected examples are shown below.
- Badagoni Wine Company (wine producer)
- Georgian Industrial Group (energy products)
- JSC RMG Copper (copper, gold)
- JSC Tbilaviamsheni (aerospace products)
- Kutaisi Auto Mechanical Plant (trucks, automotive parts)
- MagtiCom Ltd (telecommunications)
- Rustavi Steel (steel products)
- Wissol Petroleum (oil, gas)
In macroeconomic terms, Georgia’s total exported goods represent an estimated 3.3% of its overall Gross Domestic Product for 2023 ($92.8 billion valued in Purchasing Power Parity US dollars). That 3.3% for exports to overall GDP in PPP for 2023 compares to 5.2% one year earlier. This seems to indicate a relatively decreasing reliance on products sold on international markets for Georgia’s total economic performance albeit based on a short timeframe.
Another key indicator of a country’s economic performance is its unemployment rate. Georgia’s unemployment rate averaged 16.4% for 2023, down from an average 17.3% jobless rate for 2022 according to International Monetary Fund metrics.
Georgia’s capital and largest city is Tbilisi.
See also Georgia’s Top Trading Partners, China’s Top Trading Partners, Russia Top Trading Partners and Turkey’s Top 10 Exports
Research Sources:
Central Intelligence Agency, Country Profiles, The World Factbook. Accessed on November 14, 2024
Forbes Global 2000 rankings, The World’s Biggest Public Companies. Accessed on November 14, 2024
International Monetary Fund, Exchange Rates selected indicators (Domestic Currency per U.S. dollar, period average). Accessed on November 14, 2024
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on November 14, 2024
International Trade Centre, Trade Map. Accessed on November 14, 2024
Investopedia, Net Exports Definition. Accessed on November 14, 2024
Wikipedia, Georgia (country). Accessed on November 14, 2024
Wikipedia, Gross domestic product. Accessed on November 14, 2024
Wikipedia, List of Companies of Georgia (country). Accessed on November 14, 2024
Wikipedia, Purchasing power parity. Accessed on November 14, 2024