Foreign trade turnover: as Georgia in the period of the pandemic

2020/09/45345-1600247937.jpg
Read: 1028     11:00     16 Сентябрь 2020    

Since the beginning of the year, Georgia's foreign trade turnover has decreased by almost 17% compared to January-August last year

Exports from Georgia continue to fall – from January to August 2020, Georgian products were exported in the amount of about 2.1 billion dollars - 14.7% less compared to the same period in 2019, according to the national statistics service of the country "Sakstat".

Imports in January-August 2020 amounted to about five billion dollars, which is 17.5% less compared to the same period in 2019.

In General, foreign trade turnover since the beginning of 2020 decreased by 16.7% compared to January-August last year and amounted to more than seven billion dollars (excluding unorganized trade).

The rate of decline in foreign trade

In August of this year, Georgia's foreign trade turnover fell by 15.9%, including exports - by 7.5%, and imports-by 19.3%.

The rate of decline began to decline in June - Georgia's foreign trade turnover fell by 16%, including exports - by 13.1%, and imports-by 17.2%. While in may this year, Georgia's foreign trade turnover fell by 33.2%, including exports - by 30.6%, and imports-by 34.3%.

The coronavirus outbreak has dealt a serious blow to the entire economy of the country-losses are incurred by hotels, restaurants, shopping centers, recreation and entertainment, and transport. The financial, construction, real estate, manufacturing, and education sectors are also under threat.

How will the restrictions affect the Georgian economy?

The epidemiological situation in Georgia has begun to deteriorate noticeably - the number of people infected with coronavirus in the country is growing rapidly. And the subsequent deterioration of the situation may lead to another introduction of strict restrictions.

Almost all sectors of the economy, including trade, have already been affected by the coronavirus pandemic in the country, and the Georgian government is doing everything possible to avoid the need for strict restrictions due to COVID-19, which the country's economy will no longer be able to withstand, Minister of economy and sustainable development Natia Turnava said.

"We are doing everything possible to avoid major restrictive measures that we have already passed through. Our economy, of course, can no longer withstand such a blow. Therefore, with the help of targeted measures, as well as thanks to the professionalism of our medical staff, we hope to pass this process relatively painlessly," Turnava said.

The decline in economic activity in the country caused by restrictions due to the risk of the spread of coronavirus, as well as large-scale state assistance to affected segments of the population, led to an increase in the budget deficit to almost 8%.

One of the main sources of covering the resulting deficit was assistance from international financial institutions, which, on the other hand, led to an increase in the country's external debt. International financial institutions have attracted $ 1.5 billion in financial assistance.

Unfavourable forecast

International studies show that as a result of the global trade crash in 2020, the reduction in trade will be in the range of 9-32%, said doctor of Economics Rati Abuladze.

"The large scale of the drop in trade at the regional level is remarkable. According to research results, the reduction in exports of 27 EU countries will exceed 285 billion euros, and the scale of the fall in imports will exceed 245 billion euros, " Abuladze told Sputnik Georgia.

He believes that despite the suppression of the new coronavirus pandemic, the decline and obstacles in international trade are only the beginning.

Sputnik-georgia.ru





Tags:



Foreign trade turnover: as Georgia in the period of the pandemic

2020/09/45345-1600247937.jpg
Read: 1029     11:00     16 Сентябрь 2020    

Since the beginning of the year, Georgia's foreign trade turnover has decreased by almost 17% compared to January-August last year

Exports from Georgia continue to fall – from January to August 2020, Georgian products were exported in the amount of about 2.1 billion dollars - 14.7% less compared to the same period in 2019, according to the national statistics service of the country "Sakstat".

Imports in January-August 2020 amounted to about five billion dollars, which is 17.5% less compared to the same period in 2019.

In General, foreign trade turnover since the beginning of 2020 decreased by 16.7% compared to January-August last year and amounted to more than seven billion dollars (excluding unorganized trade).

The rate of decline in foreign trade

In August of this year, Georgia's foreign trade turnover fell by 15.9%, including exports - by 7.5%, and imports-by 19.3%.

The rate of decline began to decline in June - Georgia's foreign trade turnover fell by 16%, including exports - by 13.1%, and imports-by 17.2%. While in may this year, Georgia's foreign trade turnover fell by 33.2%, including exports - by 30.6%, and imports-by 34.3%.

The coronavirus outbreak has dealt a serious blow to the entire economy of the country-losses are incurred by hotels, restaurants, shopping centers, recreation and entertainment, and transport. The financial, construction, real estate, manufacturing, and education sectors are also under threat.

How will the restrictions affect the Georgian economy?

The epidemiological situation in Georgia has begun to deteriorate noticeably - the number of people infected with coronavirus in the country is growing rapidly. And the subsequent deterioration of the situation may lead to another introduction of strict restrictions.

Almost all sectors of the economy, including trade, have already been affected by the coronavirus pandemic in the country, and the Georgian government is doing everything possible to avoid the need for strict restrictions due to COVID-19, which the country's economy will no longer be able to withstand, Minister of economy and sustainable development Natia Turnava said.

"We are doing everything possible to avoid major restrictive measures that we have already passed through. Our economy, of course, can no longer withstand such a blow. Therefore, with the help of targeted measures, as well as thanks to the professionalism of our medical staff, we hope to pass this process relatively painlessly," Turnava said.

The decline in economic activity in the country caused by restrictions due to the risk of the spread of coronavirus, as well as large-scale state assistance to affected segments of the population, led to an increase in the budget deficit to almost 8%.

One of the main sources of covering the resulting deficit was assistance from international financial institutions, which, on the other hand, led to an increase in the country's external debt. International financial institutions have attracted $ 1.5 billion in financial assistance.

Unfavourable forecast

International studies show that as a result of the global trade crash in 2020, the reduction in trade will be in the range of 9-32%, said doctor of Economics Rati Abuladze.

"The large scale of the drop in trade at the regional level is remarkable. According to research results, the reduction in exports of 27 EU countries will exceed 285 billion euros, and the scale of the fall in imports will exceed 245 billion euros, " Abuladze told Sputnik Georgia.

He believes that despite the suppression of the new coronavirus pandemic, the decline and obstacles in international trade are only the beginning.

Sputnik-georgia.ru





Tags: