by Georgy Kalatozishvili, Tbilisi. Exclusively for VK
The Georgian Statistical Service has rounded up the economic development of the country in 2011. Figures show that the economy was unstable in the pre-crisis period, although demonstrating growth.
Trade turnover in 2011 totaled $9.24 billion, exceeding figures in 2010 by 36%. The negative balance totaled $4.86 billion, increasing 32% compared with the previous year.
Exports grew by 39% and totaled $2.19 billion. Imports increased to $7.05 billion, exceeding figures in the previous year by 34%.
Georgia trades with 147 states and has a positive balance with only 32 of them. Armenia is the only one out of the 10 largest trading partners to give Georgia a positive balance.
Turkey remains Georgia’s main trade partner. Foreign trade with it increased from $1.1 billion in 2010 to $1.5 billion in 2011. Azerbaijan is the second largest trade partner ($1.03 billion), followed by Ukraine ($846.8 million), China ($553.6 million), Germany ($529.6 million) and Russia ($426.3 million). Taking into account the unofficial Russian embargo, i.e. the ban on imports of any Georgian products, the sum is significant. The high trade rate was probably caused by Georgia continuing to purchase Russian products.
21% ($450 million) of goods exported in 2011 were cars. This is unusual due to the fact that Georgia produces no vehicles. Vehicles were re-exported, which has become profitable as a result of measures to combat red tape and simplify all procedures.
Georgia exports ferrous alloys (12%), nitrogen-based fertilizers (7%) and scrap metal (7%). Exports of scrap metal used to prevail in exports.
13% of all imports were oil and petroleum, totaling $910.9 million. 7% of imports were cars, 2.9% medicaments and 2.6% grain.
Georgia achieved an economic rate of 6.5% in 2011, becoming the world’s third top state in terms of economic growth as a result of measures to fight corruption and simplify registration of business and low taxes. A ccording to "Doing Business", an annual rating composed by the World Bank and the International Finance Corporation, Georgia was only behind Turkey and Estonia, which took first and second positions respectively. This year, the government promised a two-digit figure of economic growth rate, which is practically impossible to achieve, unless domestic stability remains. It would be unlikely with the upcoming parliamentary polls in October 2012.
The same rating shows that Georgia had the highest rate of property registry, becoming first among 183 states.
