On 18 July 2014, at the extra plenary session of the Parliament, Minister of Economy and Sustainable Development of Georgia, Giorgi Kvirikashvili, stated that according to the data of the first five months, there was a 16% growth in export. The Minister also pointed out that the share of agricultural products in export had increased.

FactCheck took interest in the Minister’s statement and verified its accuracy.

According to the National Office of Statistics of Georgia (GeoStat), export in the first five months of 2014 was equal to USD 1,175 million. In the same period of 2013, value of the exported goods was USD 1,001.8 million. Hence, the export in 2014 is USD 173.2 million and 17.3% more than in the same period of the previous year. It should be noted that this percentage change shows the nominal growth in export. The biggest share of goods is still exported to the member states of the Commonwealth of Independent States (CIS). According to GeoStat, 53% of export in 2014 was to the Commonwealth of Independent States. However, export to the European Union member states has also been increased. The total value of the goods exported to the European Union in 2014 was USD 92.5 million more than in the previous year and constituted 21% of total export.

Chart 1

There are positive changes in the agricultural sector as well. Production in this sector has been growing since 2009. It should also be noted that with the growth of production, export of agricultural goods grew as well. Chart 1 depicts the share of exported agricultural goods in total production from 2009 to 2013.

Chart 2:

Source: National Statistics Office of Georgia

According to GeoStat, the total value of exported agricultural goods in 2014 was equal to USD 774.3 million which was 26% of the total export, whereas in 2012 the share of exported agricultural goods in total export constituted 21%. The largest share of the exported goods was natural grape wines, livestock, nuts and walnuts and mineral waters. Chart 2 reflects the share of different sorts of products in the export of agricultural goods.

The growing dynamics of the export of agricultural goods was maintained in 2014 also. Wine and alcoholic beverages still make up a large part of the export. Export of nuts and walnuts has also increased (by 14.08%). There was a substantial growth in the export of natural grape wines (164.1%) and mineral and still waters (76.08%). Chart 3 shows the absolute export dynamics from 2009 to 2013, including the export of agricultural products as well.

Chart 3:

Source: National Statistics Office of Georgia

The value of the exported agricultural goods in the first five months of 2014 was equal to USD 282.2 million which constitutes 24% of total export and is USD 71.55 million more than in 2013. As for the exported agricultural goods in the first five months of 2013, their value was USD 210.67 million which constituted 21% of the total export. Hence, the share of agricultural products in export has, indeed, grown.

Conclusion

Export in the first five months of 2014 was equal to USD 1,175 million which was USD 173.2 million more than in the same period of 2013. The nominal growth of export was 17.3%. The share of agricultural products in total export has also grown and constitutes 24% which is 3% more than in 2013.

FactCheck concludes that Giorgi Kvirikashvili’s statement: “We have 16% growth in export in the first five months. The export of local, especially agricultural, products is growing,” is TRUE.