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French-Georgian Relations

Economic relations

French-Georgian Relations


EU-Georgia relations are governed by the Association Agreement, signed in 2014 that entered into force on 1 July 2016, which includes a Deep and Comprehensive Free Trade Area (DCFTA). Georgia is an important partner in the framework of the EU's European Neighborhood Policy.


The liberalization of the short-stay visa regime took effect on 28 March 2017. Acceleration of emigration.

EU assistance in Georgia is equivalent to 120 million euros a year. It focuses on the reform of public administration and justice, rural development, education, and the promotion of civil society.

The EU is Georgia's largest trading partner (29% of trade in 2018). In particular, the DCFTA helped stimulate imports from Europe (+ 19%).


Macroeconomic perspectives

South Caucasus Second Economy: GDP of USD 17 billion, GDP / Cap USD 4400

Growth is solid in 2018 at 4.8% with a forecast in 2019 prev. at 4.6%.


Main aggregates


External account   

Existing balance (%GDP)


Total exports (Billion USD)


Total imports (Billion USD)


External debt (Billion USD)


Foreign exchange reserve (by month of importation

Banking sector

Own funds (% of total assets)

22.5% -


107% -

Doubtful loan ratio

Public finances

Public debt (% GDP) (external debt)

43.3 (108,9)43.5 (113.3)

Government budget balance (% GDP)


Compulsory contribution rates



  • Fitch: BB stable
  • Moody's: Ba2 stable
  • S&P: BB- stable
  • BPI: B
  • Transparency: 58/100
  • OECD: 6



The French economic presence is strengthening

Georgia is France's largest market in the Caucasus, with whom it has a structural and growing trade surplus.

French exports: + 6.4% in 2018 (+ 44% in 2017) to 192 Billion EUR.

Main exports:

  • pharmaceuticals 26% of exports (+ 0.4%);
  • equipment 25% (+ 380%);
  • chemicals 14.12% (+ 18.9%);
  • LPN products 12% of exports (+ 2.1%);

Imports: + 26.6% to 45 Billion EUR.

Purchases of distilled alcoholic beverages 40% (+ 43%)
Market share: 2.88% (1.69% in 2017).

French companies have invested in traditional sectors:

  • transport,
  • agribusiness,
  • commercial real estate,
  • mechanical industry,
  • recently

Bilateral trade: surplus and rising exports

Evolutions of the French's export and import with Georgia (Billion EUR)

Exports dominated by equipment and pharmacy

French export

Bilateral trade: progress in 2018

Evolution of the market shares

Energy, equipment and agriculture sectors of opportunity

  • Gas, hydroelectricity; eolian
  • Energetic efficiency
  • Land Registration and Farmland Ownership Act; seed sector development;
  • Geographical Indications

Strong support from donors

Strong presence of multilateral and regional donors (WB, ADB, EU, EIB, EBRD) and bilateral donors (AFD, KfW): infrastructure projects and technical assistance

AFD: opening of the regional office in Tbilisi in dec. 2016

Activities of Proparco, a subsidiary of AFD, for the financing of the private sector, in the banking, health and hydropower sectors.

Relations with Russia and the EEU

2018 exchanges with Russia:second partner (1.4 billion USD, + 15%) behind Azerbaijan since 2018.

Exports to Russia: 447 Billion USD, + 10%

Imports from Russia: 935 Billion USD + 17%.

Industrial base adapted to Russian standards. Russia's share of Georgian exports dropped from 14.5% to 13%.


EEU: trade growth: + 24%.

Georgian imports: 15.9% (15.2% in 2017)

Exports: 25.7% (25.4% in 2017)

Decrease in market shares.


Tourism: 1.4 million Russian tourists in 2018 (23%); 17%; higher expenses; diversified (mountain areas, casino, sea)

FDI: old investments in the energy sector, banking, mining and more recent telecommunications, agribusiness (Borjomi: Alfa- Nestlé).

Energy: 75% of the electricity distribution belongs to INTER; hydroelectric power stations in Gardabani (80% electricity in winter); Khami-1 and 2 etc .; gasoline distribution networks (Lukoil, Gulf); VTB (5% of the market); water supply of the capital; gold mine; telecommunications (Beeline - 8% of the market).

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