New Trade Trajectory: How Economic Ties with Israel Strengthened and What It Means for Georgia

The first quarter of 2025 delivered a clear message — Georgia and Israel are entering a new phase of economic engagement. A 61% increase in bilateral trade turnover early in the year signals more than just statistical growth. It reflects a shift in mindset: a move from occasional exchange toward strategic economic partnership.

According to official data, bilateral trade reached $19.7 million in Q1 2025, compared to $12.2 million during the same period in 2024. Behind these numbers lies a deeper narrative — Georgia’s export structure is not only growing but evolving, with outbound trade volumes to Israel now surpassing imports in both scale and complexity.

A Stronger Georgian Export

Exports to Israel rose by nearly 60%, totaling $13.7 million. Leading the list is hazelnuts and other nuts, a reflection of Georgia’s agricultural potential and Israel’s rising demand for health-oriented foods. But the story doesn’t end there. Georgia also exported fertilizers, coffee and tea extracts, ferroalloys, and even high-tech equipment — clear signs of product diversification and a shift toward higher value-added exports.

High-Tech Imports on the Rise

On the import side, Georgia brought in $5.9 million worth of goods from Israel in Q1 — a 64% increase over last year. While petroleum products remain dominant, Israel’s technology and medical sectors are making significant inroads. Imports included cosmetics, medical and veterinary devices, cleaning products, and various high-tech solutions — all pointing to Israel’s expanding role as a supplier of innovation-intensive goods.

What’s particularly striking is the complementarity of this trade relationship. Georgia exports resource-based and semi-processed products, while it imports industrial, medical, and advanced technology goods. This mirrors the classic pattern between a resource-rich emerging economy and a technology-driven developed one — one provides inputs, the other offers tools and systems to modernize.

Beyond Trade: A Strategic Direction

This rise in trade is more than economic momentum — it’s a signal of strategic alignment. In the bigger picture, it reinforces Georgia’s geoeconomic transformation, as the country moves toward diversified trade partnerships and export sophistication.

If the current trend continues, Georgia could unlock deeper cooperation with Israel not only in trade, but in technology, agriculture, water systems, climate adaptation, and education. These sectors address long-standing structural challenges in Georgia and could play a critical role in enhancing the country’s competitiveness within the global trade network.

In short, what began as a promising trade uptick may soon evolve into a broader bilateral innovation partnership — one with the potential to reshape Georgia’s economic model for the better.