PROBLEMS CAUSED BY CHRONIC DEFICIT OF FOREIGN TRADE OF GEORGIA AND WAIS TO SOLVE THEM IN THE CONDITIONS OF OPEN ECONOMY

David Katamadze

Batumi Shota Rustaveli State University, Batumi, Georgia

Email: qatamadze.davit@bsu.edu.ge

https://orcid.org/0000-0003-2992-9326

Guliko Katamadze

Batumi Shota Rustaveli State University, Batumi, Georgia

Email: irina.beridze@bsu.edu.ge

https://orcid.org/0000-0001-5645-8633

Abstract

ABSTRACT. The article discusses the problems caused by the chronic deficit of foreign trade in Georgia, which hinders the process of managing the open economy of our country. The state of import-export coverage in Georgia is analyzed, taking into account the peculiarities of the trade conditions of our country. The negative consequences of the excessive dependence of the Georgian economy on the economies of other countries have been identified.

    Based on bibliographic studies and statistical materials, the foreign sources from which the chronic foreign trade deficit is covered at the expense of foreign exchange earnings are identified. Based on the study of the experience of other countries and the analysis of statistical data of our country, it is substantiated that foreign trade will contribute to the economic growth of Georgia only if the export balances the import or exceeds it. The experience of those countries which, by conducting the correct foreign trade policy, were able to overcome the economic crisis and achieve rapid economic growth are studied. Relevant conclusions and recommendations are made based on the analysis of the problems caused by the chronic deficit of foreign trade of Georgia.