Trade deficit down 11.4% y/y in June 2015 and down 0.5% y/y in 1H15
In June 2015, exports decreased 18.9% y/y to US$ 198.0mn, imports fell 14.0% y/y to US$ 599.6mn, and the trade deficit narrowed 11.4% y/y to US$ 401.6mn, according to foreign trade data released by GeoStat. It is notable that Georgia originated exports posted a growth of 2.3% y/y, the first on record since August 2014, while the decline in exports was solely attributed to a sharp drop in re-exported commodities (-54.4% y/y, mostly used cars). Nuts (+864.8% y/y) and gold (+67.9% y/y) were the major Georgia originated exports expanding significantly in June. At the same time, exports to the EU spiked 19.4% y/y, while CIS markets were a major drag, decreasing 39.5% y/y. In June 2015, imports continued the downward trend, savings from lower oil imports and car imports being the major contributors.
In 1H15, exports fell 23.8% y/y to US$ 1.08bn, imports decreased 8.7% y/y to US$ 3.68bn, and the trade deficit contracted 0.5% y/y to US$ 2.60bn. 27% of exports were directed to the EU (-2.0% y/y), 39% to the CIS (-45.1% y/y), and 34% to other countries (+2.9% y/y), out of which Turkey (10.1% of total), and USA (5.3%) were the largest export destinations. A 65.6% y/y drop in car exports (9.2% of total) had the largest negative impact. Nuts (+163.1% y/y), pharmaceuticals (+68.4% y/y), crude oil (+99.1% y/y), and gold (+79.7% y/y) were the major Georgian exports expanding significantly in 1H15.
In 1H15, petroleum (-26.7% y/y), pharmaceuticals (+102.1% y/y), cars (-26.4% y/y), gases (+22.0% y/y), and copper ores (+17.1% y/y) represented the top 5 imported commodities. 31% of imports came from the EU (+2.6% y/y), 26% from the CIS (-1.9% y/y), and 43% from other countries (-18.4% y/y), with Turkey (17.6% of total), and China (8.6%) being the largest trading partners.
