• Analysis and Studies
• Georgia: a look at the market (1)

Georgia's strategic location between Europe and Asia has historically subjected it to numerous conflicts: over the centuries, it has been targeted by Romans, Persians, Arabs, Ottomans, and Russians, each seeking to take control over its territory. After being annexed by Russia, Georgia regained independence in 1991 but remained a contested region due to its ambitions for integration with West.

The 1990s were marked by instability and civil unrest, including the overthrow of the first post-independence government and the emergence of separatist movements in South Ossetia and Abkhazia, supported by Russia. This period culminated in brief conflict between Russia and Georgia in August 2008, during which Russia invaded significant parts of Georgian territory. Although Russia initially committed to withdrawing, it subsequently recognized the independence of Abkhazia and South Ossetia and has maintained military forces in these regions since then.

The name used by West is Georgia, but the native name is Sakartvelo, meaning “Land of the Kartvelians” and refers to the central region of Kartli, whereas the capital Tbilisi means “warm place”, referring to the numerous sulfuric hot springs in the area.

In 2022, Georgia was the 118^th economy in total exports with a trade of $6.82B and the 103^rd in total imports with a trade of $14.7B.

Georgia has a high level of specialization in Manganese Oxides ($17.5M), Water ($113M), Cyanides ($17.5M), Nitrogenous Fertilizers ($728M), and Sheep and Goats ($22.2M).

In 2022 the most exported product was Copper Ore with a trade of $1.03B, ahead of Cars ($886M), Nitrogenous Fertilizers ($728M), Ferroalloys ($471M), and Wine ($253M), with China as major destination (11.1%), followed by Azerbaijan (9.8%), Russia (9.42%), Armenia (8.37%), and Bulgaria (7.37%).

The country’s exports portfolio shows a variety both in goods and in destinations, underscoring at the same time both strong regional and global ties (major economies like China, the United States, and India are present).

While pivotal exports such as copper ore and wine are concentrated on a few key markets, Georgia actively pursued diversification by broadly distributing products such as fertilizers. The balance blend of raw materials, industrial goods, and consumer products indicates a strategic approach aimed at maintaining economic stability.

1. Copper Ore (15.1%): 56% China, 40.1% Bulgaria, 3.56% Spain
2. Cars (13%): 34.8% Azerbaijan. 15.2% Armenia, 13% Ukraine, 11.3% Kazakhstan, 8.54% Russia, 8.02% Kyrgyzstan
3. Nitrogenous Fertilizers (10.7%): 35.3% India, 21.8% Romania, 21.6% Peru, 8.48% Bulgaria, 2.87% Ghana, 1.86% Ukraine, 1.68% Armenia
4. Ferroalloys (6.91%): 50% United States, 23.1% Russia, 12.7% Turkey, 3.82% Italy, 2.68% Azerbaijan, 1.57% Ukraine, 0.31% Armenia
5. Wine (3.71%): 63.6% Russia, 5.77% Poland, 5.41% Ukraine, 4.94% China, 3.99% Kazakhstan, 2.1% United States

Whereas the most imported products were Cars ($1.67B), Refined Petroleum ($1.47B), Petroleum Gas ($461M), Packaged Medicaments ($433M), and Copper Ore ($325M), with Turkey being the most significant source (16.9%), ahead of Russia (12.5%), China (8.47%), United States (7.77%), and Germany (4.58%).

These imports indicate Georgia's dependence on international markets for essential goods such as energy resources, pharmaceuticals, and industrial raw materials.

The diversity in sources reflects the country’s strategy to secure stable supply chains and benefit from competitive advantages by sourcing crucial products from both regional neighbors and global economic powers. These import dynamics play a crucial role in supporting both domestic consumption and industrial activities, contributing to the country's overall economic resilience and competitiveness.

1. Cars (11.4%): 54.6% United States, 15.9% Japan, 11.1% Germany, 3.47% Turkey, 1.34% United Kingdom, 0.77% China, 0.43% Russia
2. Refined Petroleum (9.98%): 42.4% Russia, 17.5% Romania, 10.8% Turkmenistan, 7.97% Turkey, 7.8% Bulgaria, 7.72% Greece, 3.02% Azerbaijan, 0.93% Germany
3. Petroleum Gas (3.14%): 75.6% Azerbaijan, 24.4% Russia
4. Packaged Medicaments (2.95%): 15.8% Turkey, 10.6% Germany, 10.3% France, 8.1% Switzerland, 8.09% India, 7.25% Hungary, 4.44% Russia, 3.75% Ukraine, 0.54% United States, 0.51% China
5. Copper Ore (2.21%): 32.2% Chile, 24.1% Indonesia, 17.5% Serbia, 13% Brazil, 3.72% Turkey, 1.8% Azerbaijan

Between 2021 and 2022 the country which saw the fastest growth in export was Armenia with an increase of $316M, ahead of India ($286M) and Bulgaria ($190M).

1. Armenia: from $255M to $571M
2. India: from $31.9M to $318M
3. Bulgaria: from $312M to $502M

Whereas as regards the imports, the fastest growing market was Russia with an increase of $854M, followed by Turkey ($654M) and United States ($440M).

1. Russia: from $981M to $1.83B
2. Turkey: from $1.84B to $2.48B
3. United States: from $702M to $1.14B

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