Azerbaijan, Georgia see decline in bilateral trade

Trade relations between Azerbaijan and Georgia have seen a noticeable decrease in recent months. 

According to data released by the National Statistics Office of Georgia, the total trade turnover between the two countries from January to October 2024 amounted to $1.069 billion, Caliber.Az reports, citing local media.

This represents a 13% drop compared to the same period in 2023, highlighting a decline in bilateral economic activity.

Azerbaijan remains one of Georgia’s key trade partners, accounting for 5.6% of Georgia's overall foreign trade turnover. However, the reduction in trade volumes has been attributed to several factors, including shifts in regional dynamics and changing economic conditions in both countries.

The decrease in trade has been most apparent in the value of exports and imports. In particular, Georgia’s exports to Azerbaijan saw a significant decline of 14.4%, falling to $610.992 million. These exports account for 11.2% of Georgia’s total foreign exports. Meanwhile, imports from Azerbaijan into Georgia also saw a decrease, dropping by 11.2% to $458.454 million, making up 3.4% of Georgia’s total imports.

In terms of transportation, the third quarter of 2024 saw an interesting trend: of the 258,751 tons of railway cargo entering Georgia, 30.8% was transported through Azerbaijan. 

On the railway front, Georgia’s railways transported a total of 3.6 million tons of cargo in the reporting period, a 0.7% decrease compared to the same period last year. Of the total cargo transported, 10.1% was domestic, 30.5% was international (excluding transit), and the majority, 59.4%, consisted of transit cargo. 

In terms of regional trade, a significant portion of Georgia’s railway cargo has continued to come from Russia, accounting for 37% of the total cargo delivered. Meanwhile, Azerbaijan remains an essential trade partner, with 30.8% of the cargo arriving from there. The remaining 32.2% of railway cargo came from other countries, further highlighting Georgia’s connections to a broader international network.

By Tamilla Hasanova