One of the most important signals in Georgia’s January-May 2026 economic data is the sharp increase in local exports. Local exports – exports excluding re-exports – increased by 66.1% and reached USD 1.93 billion. Their share in total exports rose to 62.1%, compared with 44.8% in the same period of 2025. This means that goods produced in Georgia or significantly transformed inside the country took a larger place within the export structure.
This is especially important because total exports are also growing. In January-May 2026, Georgia’s goods exports reached USD 3.11 billion, up 19.8% year-on-year. Imports declined by 1.9% to USD 7.33 billion, although the trade deficit remained high at USD 4.22 billion. This shows that export growth is a positive trend, but the economy still remains significantly dependent on imports.
BTU researchers assess that the jump in local exports may become a new economic opportunity for Georgia, but only if this growth turns into more diversified, higher-value and knowledge-based exports. Local export growth is positive in itself, but its structure shows that a large share still comes from petroleum products, ores, ferroalloys and other commodity groups. This brings revenue to the economy, but it does not automatically mean that the country has already shifted toward deeper industrial, technological or branded exports.
The main question is therefore this: is the 66.1% increase in local exports only a short-term statistical jump, or can Georgia use this trend to strengthen local production, processing, services, logistics, quality and brands?
Local exports are a particularly important indicator for Georgia’s economy because they better show what is created inside the country. Total exports can grow through re-exports – for example, through the resale of imported goods to another country. This model brings trade turnover, logistics income and business activity, but it does not always mean deep local production. Local exports are closer to the question of how much value the country creates itself.
In January-May 2026, local exports rising to USD 1.93 billion and their share increasing to 62.1% means that a source beyond re-exports has strengthened inside Georgia’s export structure. This is especially important for a country whose external trade has long included a large role for vehicle re-exports, the rerouting of imported goods and several major trade flows.
However, local export growth does not automatically mean that the economy has already diversified. The largest local export commodity group in January-May 2026 was petroleum and petroleum products at USD 352.2 million, accounting for 18.3% of local exports. The second largest group was precious-metal ores and concentrates at USD 255.6 million, followed by ferroalloys at USD 130.8 million and copper ores and concentrates at USD 112.3 million.
This structure should be read in two ways. On one hand, it is positive that more local or significantly transformed goods are being exported from Georgia. On the other hand, if a large part of growth is connected to resources, raw materials or semi-processed products, the economy remains sensitive to changes in global prices, demand and a few markets. In such cases, exports can increase quickly, but they can also slow quickly if global prices, partner-country demand or logistics conditions change.
The geography of local exports also deserves attention. In January-May 2026, the largest local export partner was China at USD 317.4 million, followed by Russia at USD 229.0 million and Türkiye at USD 207.2 million. Local exports to China increased by 162.1% year-on-year, to Türkiye by 72.7%, to the United States by 42.0%, and to Ukraine by 68.3%. This shows that the geography of Georgia’s local exports is changing, although it still depends significantly on several large markets.
Local export growth should therefore not be viewed simply as “more sales abroad.” For the economy, the most important issue is the type of value created. If exports grow through raw materials, ores or fuel-related groups, the country receives income, but the technological, branding and labor-market effects remain limited. If exports grow through processed food, packaging, local FMCG brands, light manufacturing, technology services, logistics services, agrotechnology or high-quality beverages, more value remains inside the country.
This is where Georgia’s new economic opportunity appears. The jump in local exports can become a push for sectors where the country can realistically add value. For agro-industry, this means not only selling raw products, but also processing, packaging, storage, quality control and branding. For the beverage sector, it means not only maintaining traditional markets, but also developing new markets, new formats and stronger quality communication. For light manufacturing, it means small batches, flexible production, regional orders and fast delivery.
Local export growth is also directly connected to logistics. If more local products are exported from Georgia, the country needs better warehouses, cold chains, certification systems, fast customs services, transport planning, insurance and financial products. In Q1 2026, transport and storage grew by 18.0%, showing that logistics infrastructure is one of the active areas of the economy. But the quality of this growth will depend on whether the country can move beyond simply moving cargo and toward higher-value services.
BTU researchers also point to the connection between local exports and the digital economy. In Q1 2026, information and communication grew by 36.0% and accounted for 10.4% of GDP. This means the country already has a growing digital sector that can help exporters with market analysis, price monitoring, sales-channel management, inventory forecasting, quality documentation and customer communication.
In other words, the new opportunity in local exports is not created only inside factories. It is created in data, logistics, design, packaging, certification, sales, branding and continuous quality control. For a small economy, this is decisive: Georgia cannot be a large-scale producer in every field, but where it has advantages, it can create high-quality, flexible, regionally adapted and knowledge-enhanced exports.
At the same time, local export growth requires caution. If the 66.1% increase is mostly connected to a one-time jump in a few commodity groups, maintaining it in future years will be difficult. If the growth gradually spreads across more sectors, more companies and more markets, it can become structural improvement. The main task is therefore not only to celebrate the current growth, but to break it down: which sectors are growing, where the price effect is visible, where volume is increasing, where new companies are entering, where new markets are opening and where local added value is rising.
Key findings
The 66.1% increase in local exports is one of the most important positive signals in Georgia’s first five months of 2026. It shows that the part of exports beyond re-exports, more directly linked to value created or significantly transformed inside the country, has gained a larger role.
However, the structure of growth shows that local exports remain concentrated in several major commodity groups. Petroleum products, precious-metal ores, ferroalloys and copper ores have significant shares. This means the local export jump is positive, but not yet sufficient evidence of full diversification.
Georgia’s new opportunity lies in connecting local export growth to higher-value directions: processing, packaging, quality standards, local brands, logistics services, digital sales, agro-industry, light manufacturing and technology services.
The main risk is that the country becomes satisfied with the growth number and does not work on the content behind it. Local export growth should become not only an indicator, but an economic development strategy.
Data and evidence base
In January-May 2026, Georgia’s total exports reached USD 3.11 billion, up 19.8% year-on-year. Local exports amounted to USD 1.93 billion, up 66.1%. Their share in total exports rose to 62.1%.
The largest local export partner countries were China at USD 317.4 million, Russia at USD 229.0 million, Türkiye at USD 207.2 million, Bulgaria at USD 119.4 million, Togo at USD 96.9 million, Armenia at USD 85.7 million, Switzerland at USD 66.0 million, Azerbaijan at USD 60.9 million, Ukraine at USD 57.7 million, and the United States at USD 49.8 million.
The largest local export product groups were petroleum and petroleum products at USD 352.2 million, precious-metal ores and concentrates at USD 255.6 million, ferroalloys at USD 130.8 million, copper ores and concentrates at USD 112.3 million, natural grape wines at USD 92.3 million, mineral and fresh waters without sugar additives at USD 82.8 million, mineral and aerated waters with sugar at USD 79.0 million, nitrogen fertilizers at USD 78.0 million, spirits at USD 73.5 million, and gold at USD 72.1 million.
In the same period, external trade turnover reached USD 10.44 billion, exports increased by 19.8%, imports declined by 1.9%, and the trade deficit reached USD 4.22 billion.
In Q1 2026, real GDP increased by 9.0%. Fast-growing sectors included information and communication at 36.0%, transport and storage at 18.0%, and financial and insurance activities at 11.7%. These sectors can become important supporting infrastructure for local export development.
Why this matters for Georgia
Local export growth matters for Georgia because it shows the part of the economy that stands beyond re-exports. It is a closer indicator of what is created in the country, what is processed, what gains value and what can become a more sustainable economic base.
If local exports grow only in a few resource-based commodity groups, the country will gain revenue, but its economic model will remain vulnerable. If local export growth spreads to small and medium-sized businesses, processing sectors, technology services, regional logistics and branded products, this will mean deeper transformation.
This is also important for regions. Stronger local exports can support not only large companies, but also agricultural processing, local enterprises, service companies, packaging businesses, transport, warehouses and professional education. If export growth is managed well, it can become a tool of regional development.
Another important issue is market diversification. A large part of local exports goes to a few countries. This increases risk if demand, regulation or political conditions change in any one market. Therefore, the next stage of local export growth should be new market development, product-standard improvement and business readiness for operating beyond one or two destinations.
BTUAI assessment
BTUAI assesses that the 66.1% growth in local exports is a strong opportunity for Georgia’s economy, but not yet a final answer. It is a signal that the weight of local value inside exports has increased, but it is necessary to understand what stands behind this growth and how sustainable it can be.
Georgia’s correct task is to use local export growth for qualitative economic change. The country should strengthen processing, product quality, certification, packaging, branding, logistics services, digital sales and data-based market analysis. Only then can the local export jump become a sustainable opportunity.
BTUAI assesses that local exports should become one of the main indicators Georgia uses to measure the quality of economic growth. GDP growth shows how much the economy expands. Local exports better show how much value the country creates that is competitive in external markets.
The local export jump is a chance, but this chance must become a strategy. If the country can diversify exports, strengthen local production and connect knowledge-based services, the 2026 data may become the beginning of a new economic stage.
Article identification
Title: Georgia’s Local Export Jump: Is This a New Opportunity for the Economy?
Platform: BTUAI.ge
Country: Georgia
Topic: local exports, exports excluding re-exports, local value, production, diversification
Period: January-May 2026; Q1 2026
Languages: Georgian and English
Methodology
This article was prepared through an analytical reading of Georgia’s official 2026 economic data. It uses January-May 2026 local export data, January-May 2026 external trade indicators and Q1 2026 GDP sectoral data. The analysis evaluates the structure of local export growth, partner countries, product groups, the opportunity for local value creation and its strategic importance for Georgia’s economy.
Limitations
This material is analytical and educational in nature. It does not constitute financial, investment, legal or tax advice. Before making a specific decision, consultation with a relevant specialist is recommended.
The data used are preliminary and may be revised. Local exports include goods produced in Georgia or goods substantially transformed in Georgia, but a single indicator cannot fully show the quality of added value, technological depth or company productivity.
Sources
National Statistics Office of Georgia – Local Exports of Georgia, January-May 2026.
National Statistics Office of Georgia – External Merchandise Trade of Georgia, January-May 2026.
National Statistics Office of Georgia – Gross Domestic Product of Georgia, Q1 2026.
BTUAI Research Team – analytical processing and interpretation in Georgia’s context.
FAQ
What are local exports?
Local exports are exports excluding re-exports. They include goods produced in the country or imported goods that underwent substantial transformation or significant value increase in Georgia.
Why is 66.1% growth important?
Because it shows the strengthening of the export component more directly linked to local value rather than only the redirection of goods.
Is this already a new economic opportunity?
Yes, but only if the growth continues in more diversified, higher-value and quality-based directions.
What is the main risk?
The main risk is that local export growth remains dependent on a few resource-based or commodity groups and does not become broader economic transformation.
What should business do?
Businesses should strengthen quality, packaging, certification, branding, market analysis, logistics and digital sales so that exports become not only volume, but higher value.
Keywords
local exports Georgia; Georgia export growth; exports excluding re-exports; local value creation Georgia; export diversification Georgia; Georgia economy 2026; local production Georgia; processing Georgia; Georgian brands; logistics Georgia; BTUAI; Business and Technology University.
Citation format
BTUAI Research Team. “Georgia’s Local Export Jump: Is This a New Opportunity for the Economy?” Business and Technology University, BTUAI.ge, 2026.
Authorship and BTUAI standard footer
Prepared by the academic team of Business and Technology University and the BTUAI Research Team.
Tbilisi, Georgia
BTUAI is an analytical platform of Business and Technology University that studies the impact of artificial intelligence, digital transformation, innovation, startup ecosystems, data analytics and emerging technologies on business, the economy, education and society. BTUAI materials are designed to explain complex technological and economic changes in a clear, reliable and Georgia-focused way.