Between 2014-2016, Georgia’s trade turnover has steadily declined, with some positive output since 2016 when steady growth was recorded. During these two years, Georgia’s import volumes exceeded the export volumes by 3 times on average. Between 2014-2018, the highest trade turnover result in Georgia was in 2018, at about $12.4 bil.

Source: https://www.geostat.ge/en  

By 2018, the CIS member states also topped the list of Georgia’s exports: Georgia exports reached $502 mil. with Azerbaijan and Armenia became the third largest exporter of Georgian goods after Russia. In 2018, Georgia exported goods to Russia worth $436.6 mil. and to Armenia worth $278.6 mil.

Source: https://www.geostat.ge/en

In 2018, Turkey was incomparably leading in Georgia’s import volume ($1․4 bil.), which is followed by Russia ($934 mil.) and then China ($833.8 mil.). Azerbaijan and Ukraine stand out in Georgia’s imports out of CIS countries with $592.7 mil. and $514.7mil. respectively. Georgia imported goods to Armenia reached $335.2 mil. Among Europe, Germany is leading the imports, which reach a volume of $431.4 mil. results.

Source: https://www.geostat.ge/en

Statistics shows that according to group estimates, Georgia imported the largest volume of goods ($4․4 bil.) from the Organization for Economic Cooperation and Development (OECD) member states in 2018[1]. The largest volume of imports ($4․3 bil.) was from the Black Sea Economic Cooperation Organization (BSEC) member states. Together the CIS countries exported about $2-6 billion worth of goods to Georgia, which exceeds the corresponding results of the EU countries, which accounted for $2․5 bil.

According to the Georgian National Statistics Office, Georgia exported the largest volume of goods to BSEC member states ($1․9 bil.) [2], which matches the global index of the CIS countries with its results of $1․6 bil. According to some estimates, EU’s member states share in Georgia’s exports is considered the lowest at around ($730․6 mil.).

Source: https://www.geostat.ge/en

In 2018, Turkey leads as one of Georgia’s major trading partners: bilateral trade turnover was about $1.7 bil. The second largest trading partner of Georgia is of course Russia ($1.3 bil.). Following behind Russia in trade volume is Azerbaijan with a trade turnover reaching ($1․094 bil.) next Georgia-Chinese trade volumes reached ($1.031 bil.). In 2018, Armenia was the sixth major trading partner of Georgia (about $614 mil.).

Source: https://www.geostat.ge/en

In 2018, the percentage of shares of the major trading partners in Georgia’s import export is as follows: Turkey is leading with 13.7%. Turkey, Russia, Azerbaijan and China, in general, account for more than 41% of Georgia’s total trade volume. Armenia’s share in Georgia’s trade turnover accounts for 4.9%.

Source: https://www.geostat.ge/en

In 2018, Georgia exported ready food and drinks ($704.4 mil.), chemical products ($590.9 mil.), metals ($521 mil.) and vehicles ($461․9 mil.).

Source: https://www.geostat.ge/en

In 2018, the volumes of chemical products ($1.8 bil.), cars, electric equipment ($1.6 bil.), vehicles ($871.8 mil.) were large in Georgia’s exports.

Source: https://www.geostat.ge/en

Between 1996-2019, about $21․2 bil. foreign direct investment (FDI) has been implemented in Georgia. During that period, the best results of FDI implemented in the economy were recorded between 2007-2008 and 2014-2017. Between 1996-2019, the highest result was recorded in 2017, estimated at about $1.962 bil. In 2017, FDI steadily declined.

In 2018, the largest investor in Georgia’s economy was Azerbaijan with $246.4 mil. Next comes the investment volume of the Netherlands $208.3mil. and Great Britain $178.8 mil. Moreover, the direct investment of the top three leading investors together make up almost half of the total volume of FDI implemented in Georgia’s economy in 2018.

In 2018, Turkey didn’t reach the top ten list for investment volume in Georgia.

The 2019 statistics is quite different. The largest investor in Georgia is Great Britain with $247.8 mil. Turkey and Ireland are among the top three investment countries with $236.5 mil and $132.7 mil. respectively in 2019. The FDI of the top three investors together accounted for almost half of all foreign direct investment capitalized in the Georgian economy in 2019.

Compared to 2018, Azerbaijani FDI in Georgia sharply decreased in 2019. As a result, Azerbaijan didn’t make the top ten list of investment volumes in Georgia in that specific year. 

Source: https://www.geostat.ge/en/modules/categories

It should be noted that Ireland appeared among the leading countries for investment in Georgia in 2019. In recent years, Ireland’s direct investments in Georgia have been relatively low. It was $3․1 mil. in 2018 and $190 thous. in 2017.

Between 2013-2015, Azerbaijani FDI in Georgia’s economy steadily increased. However, it changed between 2015-2019, when Azerbaijani direct investments steadily started decreasing. Between 2009-2019, Azerbaijani lowest results of FDI in Georgia’s economy were recorded in 2009 ($29.9 mil.) and in 2019 ($38.3 mil.).

Source: https://www.geostat.ge/en  

Between 2009-2019, Azerbaijan led in the volume of foreign direct investment in Georgia’s economy with $2.532 bil. The Netherlands and Great Britain are also included in the top three countries.

Source: https://www.geostat.ge/en   

In 2019, among the CIS countries Russia implemented the largest volume of FDI ($50.5 mil.) in Georgia, Azerbaijan ($38.3 mil.) and Armenia ($14.3 mil) are among the top three investment countries.   

Source: https://www.geostat.ge/en/modules/categories

In 2019, Moldova implemented direct investment of $19․4 thous. in Georgia.

Between 2012-2019, Armenia implemented a total FDI of $71.3 mil. in Georgia. In addition, between 2012-2015, the dynamics was malleable, since 2016 there has been a steady increase in investment.

Between 2012-2019, the largest volume of Armenia’s FDI implemented in Georgia was recorded in 2019 ($14.3 mil.).  

Source: https://www.geostat.ge/en/modules/categories

Statistics show that between 2009-2019, the overall result of EU member states among FDI volumes in the Georgian economy. The quantitative advantage of the EU is quite obvious compared to the corresponding result of the CIS countries.

The total largest FDI result ($835.9 mil.) of the EU countries’ in Georgia’s economy was in 2014. In 2019, the total volume of FDI of the EU countries in our neighboring country was more than 5 times exceeded the corresponding results of the CIS countries. Between 2012-2015, direct investments of the CIS countries implemented in Georgia steadily increased and since 2015, steadily decreased.

Between 2009-2019, the EU member states, taken together, implemented $5.921 bil. direct investments in Georgia’s economy. The share of other countries group is $5.089 bil. The lowest result is the collective output of the CIS member states, about $3.164 bil.

Source: https://www.geostat.ge/en   

In 2019, considerable part of the FDI in Georgia was directed to financial (20․6% of foreign complete investments), energy (15.3%) and hotels, restaurants (12.4%) sectors.

Foreign direct investments were comparably low in the fields of telecommunication, mining and transportation.

In 2019, the overwhelming part of the foreign direct investments ($820.1 mil.) implemented in Georgia’s economy was directed to the capital city Tbilisi. The investment volumes were followed by Adjaria and Samegrelo-Zemo Svaneti region.

In the forthcoming years, the EU envisages to allocate about 13 bil. euros to infrastructure projects in the Eastern Partnership countries, 3.5 bil. of which will be directed to Georgia. The projects are being implemented within the framework of the European Transport Network (TEN-T) initiative. 18 such projects are funded in Georgia. 10 of the projects are long-term and will be completed by 2030.

One of the current major infrastructure projects in Georgia is the construction of the 410-km-long East-West highway, an important transport corridor connecting Central Asia to Europe through the South Caucasus. Chumateleti–Argveta section of the highway is currently being upgraded [3]. The European Investment Bank and Asian Development Bank have provided the main investments in the project. Chumateleti–Argveta section of the highway is planned to be completed by the end of 2022.

The construction project of the deep-water port of Anaklia, the second stage of which the EU allocated about 233 mil. euros. The EU plans to allocate another 100 mil. euros to the construction of the new railway, which will connect Anaklia to the Georgian railway network.

Different foreign investment companies have a vested interest in the Anaklia project. In 2019, the Dutch Van Oord NV Company acquired 4% of the Anaklia development consortium shares for $5 mil. Currently the company implements the deepening of the sea floor of the port. Beijing was also interested in the issue of port’s construction. In March 2015, Georgian firm Anaklia Industrial Eco Park and Port Ltd. and Chinese Power China companies signed an agreement, according to which, in case of winning the tender for the construction of the Anaklia Port, the Chinese company would invest about $5 bil. in the project. However, Georgian-Chinese Consortium lost the tender. At the end of 2017, Shanghai Zhenhua Heavy Industries (ZPMC) Company signed an agreement with Anaklia development consortium, with which ZPMC provided modern cranes and equipment necessary for work with container terminals. The investments accounted for $50 mil. Early in 2018, China Railway International Group-CRIG was also interested in the port’s project. There is no information on the possible future agreements between the sides [4].

The construction project of a 14-km-long highway bypassing the city of Batumi will allow to significantly unload Batumi from its transit cargo. The project is jointly funded by the Asian Development Bank and by the Asian Infrastructure Investment Bank. The investments are about $120 mil. The construction work of the highway launched in 2018 and is planned to be put into operation in 2020.

Among other major projects is the construction of the Kutaisi and Kumis logistic centers investments, which amount to 61.5 mil. and 78.3 mil. euros respectively.

The result of economic repercussions of the coronavirus epidemic, the current investment projects can be reviewed both in terms of their implementation deadlines and investment volumes.

For foreign investors Georgia is attractive especially for the following reasons:

• Georgia is of great importance in East-West transport corridor (highways, railways),
• Georgia’s role in the development of oil and gas infrastructure projects and supply of energy is quite significant,
• Much attention is paid to the development of the Black Sea ports and their economic zones.

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[1] https://www.oecd.org/about/members-and-partners/

[2] http://www.bsec-organization.org/member-states#

[3] http://www.georoad.ge/?lang=eng&act=project&func

[4] https://orbeli.am/hy/post/353/2020-01-20/%D5%89%