• About Us
    1. Team
    2. Methodology
    3. Privacy Policy
  • Code of Principles
  • Dispute/Correction
  • Project Supporters
  • Contact
ქართული Azərbaycan հայերեն Русский

Factcheck.ge

Check your Fact
  • Elections 2024 - Crisis
  • Persons
  • Verdicts
    • True
    • Mostly True
    • Half True
    • Mostly False
    • False
    • Lie
    • Manipulation
    • Fake News
    • Without verdict
    • Half Flip
    • Full Flop
    • პოზიცია ნაწილობრივ შეცვალა
    • Satire
    • FactCheck Newspaper
  • Regions
  • Fake News
    • Climate Change
    • როგორ არ მოვტყუვდეთ?
  • Topics
    • Economy
    • Justice
    • Politics
    • Education
    • Health Care
  • Politics
    • Ukraine
    • დაპირებები
    • Election 2021
    • Elections 2017
    • 2016 Parliamentary Elections
    • Elections 2014
    • Elections 2013
    • COVID-19
    • COVID Vaccine
    • Fact-Meter TV
“Exports increased by 60% whilst trade turnover grew by 63% from 2019 to 2023.”

“Exports increased by 60% whilst trade turnover grew by 63% from 2019 to 2023.”

Verdict: FactCheck concludes that Levan Davitashvili’s statement is MOSTLY TRUE

05/12/2024
Mostly True
The application is accurate, but requires additional information and/or definition
Facebook Linkedin Twitter Print

Levan Davitashvili: “Exports increased by 60% whilst trade turnover grew by 63% from 2019 to 2023.”

Verdict: FactCheck concludes that Levan Davitashvili’s statement is MOSTLY TRUE.

Exports rose from USD 3.8 billion to USD 6.1 billion, imports from USD 9.5 billion to USD 15.6 billion and trade turnover grew from USD 13.3 billion to USD 21.7 billion between 2019 and 2023.
Whilst exports indeed grew by 60% and trade turnover rose by 63% during the reporting period, the structure of exports should also be considered. Local exports increased by only 19% between 2019 and 2023, whilst re-exports surged by 125%. Furthermore, local export levels in 2023 were lower than those of 2021 and 2022. Although re-exports are also beneficial from an economic standpoint, local exports are more significant.
Notably, inflation contributed to the nominal growth of trade turnover. Given the accurate figures, but also the omission of the importance of local exports and the inflation’s role in the growth of trade turnover, FactCheck concludes that Levan Davitashvili’s statement is MOSTLY TRUE/HALF TRUE.

Analysis

During a joint committee meeting in Parliament, the candidate for Minister of Economy and Sustainable Development (prior to confirmation) stated: “Exports of goods increased by 60% whilst trade turnover grew by 63% from 2019 to 2023.

Exports grew by 60% from USD 3.8 billion to USD 6.1 billion, imports increased by 64% from USD 9.4 billion to USD 15.6 billion and trade turnover rose by 63% from USD 13.3 billion to USD 21.7 billion between 2019 and 2023 according to GeoStat data.

Whilst the aforementioned figures are nominally accurate, another key factor should also be considered – the growth in trade turnover has been primarily driven by re-exports since 2022. Re-exports increased by 125% from 2019 to 2023 – a percentage more than double the growth rate of total exports whilst domestic exports grew by only 19%. Notably, domestic exports of 2023 were lower than the 2021 levels.

Graph 1: Foreign Trade Turnover (USD Million)


Source: National Statistics Office of Georgia

Re-exports are not a negative phenomenon and are economically beneficial. However, local exports carry greater significance as they generate higher employment, contribute more substantially to the state budget and create a higher added value.

Graph 2: Structure of Exports (USD Million)


Source: National Statistics Office of Georgia

Light vehicles lead both in re-exports and total exports. Additionally, they rank first in imports. Light vehicles totalling USD 457 million were exported in 2021; however, this figure exceeded USD 2.1 billion in 2023, reflecting a 365% increase in value and 70% increase in volume. Furthermore, the increase in value constitutes 190% whilst the growth in volume amounts to 0.5% when comparing the aforementioned figures to the 2019 levels. The average export value per vehicle amounted to USD 6,800 in 2019, USD 7,100 in 2021 and USD 19,700 in 2023. The upward trend continued in 2024, bringing the average unit value of light vehicles to USD 22,700 in the first ten months of the current year.

Automobile exports to Central Asia surged drastically. Whilst a total of 4,735 cars worth USD 41 million were exported to Kazakhstan and Kyrgyzstan in 2021, 56,727 vehicles worth USD 1.2 billion were sold in 2023 and 68,619 vehicles worth USD 1.6 billion in January-October 2024.

Graph 3: Light Vehicle Exports


Source: National Statistics Office of Georgia

The decline in local exports is mainly due to a reduced demand for copper ores and ferroalloys. Furthermore, sales of mineral and nitrogen fertilisers have also decreased as compared to 2022.

Graph 4: Local Exports by Largest Commodity Groups


Source: National Statistics Office of Georgia

The aforementioned 64% increase in imports was also significantly driven by the re-exports of passenger cars. Automobile imports rose dramatically from USD 1.1 billion to UDS 3.3 billion in 2019-2023. Additionally, the impact of inflation should also be considered in the overall growth of trade turnover. Oil products imports grew by 54% in value, rising from USD 758 million to USD 1.2 billion from 2019 to 2023. However, the increase constituted 16% in terms of quantity – from 1.2 million tonnes to 1.4 million tonnes.

Overall, trade turnover indeed increased by 63%, whilst exports grew by 60% from 2019 to 2023. However, the growth in re-exports – particularly those of light vehicles – had the greatest influence on the aforementioned trend. Re-exports of passenger cars contributed to the upward tendency not only in exports but also nearly doubled imports which subsequently led to doubling the trade turnover. Whilst local exports also grew during this period, they increased by only 19%. Notably, inflation contributed to the nominal growth of trade turnover. Given the accurate figures, but also the omission of the importance of local exports and the inflation’s role in the growth of trade turnover, FactCheck concludes that Levan Davitashvili’s statement is MOSTLY TRUE/HALF TRUE.

FactCheck
FactCheck

All Articles

  • Volume of Foreign Direct Investment in Ajara Declined in 2024.

    Volume of Foreign Direct Investment in A...

    Lie
    The statement is inaccurate and the assertion in it is absurd
  • “Trade turnover between Georgia and Armenia amounts to nearly USD 1 billion and is characterised by a growing trend.”

    “Trade turnover between Georgia and Arme...

    Mostly True
    The application is accurate, but requires additional information and/or definition
  • “Annual trade turnover with the United States amounts to GEL 2.2 billion. The turnover doubled in the first two months of this year alone, reaching USD 0.5 billion.”

    “Annual trade turnover with the United S...

    Half True
    The statement is partly accurate, but the details are missing or some of the issues are without context
IFCN Verification
EFCSN
Public Information Base
Factcheck.ge

Phone: +(995 32) 2 22 29 13

Email: [email protected]

The views and opinions expressed on this website belong to Factcheck.ge and are not the views and opinions of project support organizations.

Factcheck.ge

© 2025 | Privacy Policy