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Сar exports to improve in 2021 in Georgia - Galt & Taggart

Business Materials 29 March 2021 14:40 (UTC +04:00)
Сar exports to improve in 2021 in Georgia - Galt & Taggart

BAKU, Azerbaijan, March 29

Tamilla Mammadova – Trend:

2020 was a tough year for Georgia’s auto trade, to large extent affected by increased customs duties in Armenia, Trend reports via the Georgian investment company Galt & Taggart.

Car exports almost halved to $404 million in 2020, mostly reflecting reduced demand from Armenia and Kyrgyzstan as these countries increased customs duties from January 2020.

Car re-exports were also hindered by travel restrictions due to COVID-19 and used car market closure in 2020. However, online sales largely supported car trade with Azerbaijan and Ukraine.

"We expect car exports to improve in 2021, taking into account ongoing economic recovery in the region and last year’s low base," the report said.

Georgia has established itself as a regional hub for the car trade since 2005, without its own car production industry. New cars are mostly imported from Japan, while used cars mostly come from US, repaired in Georgia and sold to Georgians and regional customers.

"Therefore, cars are top export and import commodity in Georgia’s foreign trade. From car re-export activities, Georgia’s auto business earns 31 percent of total revenues on average annually, by our estimates," the report said.

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