Exports decrease

In recent years the balance in foreign trade shows that exports are falling in Georgia. This indicates that promoting export products is poorly developed and is connected with poverty issues and unemployment. The figures are not very encouraging: Exports for July decreased by approximately $30 million. Previously Georgian exports were mostly found in the agricultural sector, wine production and mineral waters. However, since 2006 wine and water stopped flowing into Russia because of the embargo, which was a serious blow to Georgia’s economy.

Now the country has to consider greater diversification. Some successful steps in this direction have been made but there is little diversification yet. One export sector is cars, but Georgia does not produce automobiles it only re-exports them and this creates very few jobs. Moreover the tendency to import is increasing. The most dramatic increase in imports is in the agriculture sector as Georgia has begun importing products that it previously produced itself, such as vegetables-- Turkish and Iranian vegetables are found in markets along with other items that were previously produced in Georgia.