Agro-exports to the EU: volumes, transport and logistics
Production volumes, as well as barriers in transport and logistics, play a key role in constraining agro-food exports from Georgia to the European Union. These challenges can be addressed by focusing on increasing exports through foreign direct investment and by accelerating exports of existing producers; by providing critical logistics infrastructure, including an airport cargo terminal in Kutaisi; by stimulating domestic demand for quality logistics; and by bundling interests and closing information gaps.
Strong economic growth despite Russian sanctions
In spite of the Russian sanctions, Georgia’s economic growth was high reaching 5.2% in 2019. The successful absorption of this external shock demonstrates the strong resilience of the Georgian economy, which will grow by more than 4% also in 2020.
Export potential of Georgian agro-food products in the EU market
With 29%, agro-food products make up for a significant share of Georgian exports. Despite having a free trade agreement with the EU, however, Georgian agro-food exports to the EU underperform. About 2/3 of all agro-food exports go to the CIS region. In terms of dynamics, exports to the CIS surged by 43% in 2018, whereas exports to the EU market only increased by 14%.