Irakli Kobakidze: “A record high of USD 1.4 billion worth of agricultural produce was exported from Georgia, exceeding the 2022 figure by 15%.”
Verdict: FactCheck concludes that Irakli Kobakidze’s statement is MOSTLY TRUE.
Georgia exported agricultural produce amounting to USD 1,437 million to 106 countries worldwide in 2023, exceeding the 2022 figure of USD 1,252 million by 15%, according to GeoStat data. Therefore, whilst the figures highlighted in the government report are accurate, they do not consider the increase in imports or the trade balance.
Representatives of the ruling party have often highlighted the decreasing trend in the negative trade balance in previous years, portraying this as a positive development. However, as the negative trade balance has experienced a substantial upward trend in 2022 and 2023, the Prime Minister omits this data and attempts to overestimate the positive effects of increasing exports. Considering all of the above, FactCheck concludes that Irakli Kobakhidze’s statement is MOSTLY TRUE.
Analysis
The Prime Minister’s report highlights the agricultural sector among other branches of the economy, emphasising agricultural exports: “A record high of USD 1.4 billion worth of agricultural produce was exported from Georgia, exceeding the 2022 figure by 15%. The European Union exported agricultural produce amounting to USD 163 million in 2023.”
Georgia exported agricultural produce amounting to USD 1,437 million to 106 countries worldwide in 2023, exceeding the 2022 figure of USD 1,252 million by 15%, according to GeoStat data. Therefore, the figures highlighted in the government report are accurate.
Graph 1: Foreign Trade (USD million)
Source: GeoStat
Notably, wine constituted the largest share of agricultural exports in 2023, reaching 18% of the total, followed by spirituous beverages at 14%, mineral and natural waters at 9%, non-alcoholic carbonated beverages at 8%, hazelnuts and other nuts at 6%, live bovine animals at 6%, cigarettes at 3%, live sheep and goats at 3% and other commodities.
The primary markets for exports in 2023 were as follows: Russia accounted for 34% of the total exports, constituting USD 485 million, whereas the European Union followed with 11%, equivalent to USD 163 million. Azerbaijan’s share amounted to 12% at USD 169 million, Armenia was at 9% totalling USD 130 million, Kazakhstan contributed 5% at USD 76 million and Iraq was also at 5% with USD 68 million, among others.
As previously mentioned, the total value of agricultural produce exported to the European Union amounted to USD 164 million, accounting for 11% of the total exports. The primary exports included nuts in both natural and processed forms (40%), wine (19%) and mineral and natural waters (7%).
The majority of agricultural produce exported to the European Union were received by Germany (21% of the total exports), France (19%), Poland (13%), Italy (11%), Lithuania (9%), Spain (9%) and Latvia (5%), among others.
The government report highlights agricultural exports but does not include data on the trade balance which represents the difference between exports and imports. The trade balance has consistently been negative in recent years, indicating that imports have exceeded exports. There was a downward trend in the trade balance in 2013 and 2014, followed by an increase from 2015 to 2017; however, the negative trade balance resumed its decline in the period from 2018 to 2021. The negative trade balance amounted to USD 590 million in 2022, constituting a 185% increase as compared to the previous year; however, it remained practically unchanged at USD 580 million in 2023, representing a marginal decrease of 1.7% as compared to the previous year.
Graph 2: Foreign Trade by Year (USD million)
Representatives of the ruling party have often highlighted the decreasing trend in the negative trade balance in previous years, portraying this as a positive development (refer to article 1, article 2 and article 3). However, as the negative trade balance has experienced a substantial upward trend in 2022 and 2023, the Prime Minister omits this data and attempts to overestimate the positive effects of increasing exports. Considering all of the above, FactCheck concludes that Irakli Kobakhidze’s statement is MOSTLY TRUE.
