Economics

Economies Most Dependent On Exports To Developing Former Eastern Bloc Nations

More than two-thirds of Kyrgyzstan's exports go to other low- and middle-income economies in Central Asia and Eastern Europe.

Each of the top ten countries most dependent on exporting to the former Eastern Bloc come from the same general region. They all import more than they export, and a few, such as Kyrgyzstan and Tajikistan, also depend on remittances from expatriates for revenue.

Kyrgyzstan

The main occupation in Kyrgyzstan is agriculture. It contributes to one-third of the country's GDP and employment. The country has many mineral resources, whose exports are an important revenue earner. Kyrgyzstan exported goods worth $1.09 Billion, but imported petroleum, textiles and cars worth $9.3 Billion. Its main exports are gold, uranium, copper, and other precious metals such as silver, platinum, and rhodium. Dried legumes is one of its main agricultural export. Exports go mainly to Switzerland, Kazakhstan, Russia, Turkey and China. Its exports to developing countries make up 67.2% of its trade. The precious metals are exported to rich and developing countries, Australia, Russia, Bolivia, Guatemala, Mexico, China, South Korea, Germany, Japan and USA. The country is plagued by corruption, regional instability and low investment in its economy.

Georgia

Georgia is strategically situated between Western Asia and Eastern Europe, and has access to both maritime and terrestrial trade routes. Its free market, stable economy, and investor friendly policies makes trade with this country easy. It exported $3.58 Billion worth of cars, refined petroleum, ferrous alloys, copper ore, gas, medicines, broadcasting equipment and wine, in 2014. It exports mainly to Azerbaijan, the USA, Russia, Bulgaria, and Armenia, and the trade to the erstwhile eastern bloc and developing countries makes up 56% of its trade.

Montenegro

This Balkan state has a transitional economy based mainly on services, and is still recovering from war and United Nations' economic sanctions. Its exports most often go to the neighboring countries Serbia, Croatia, and Slovenia, which make up 22.7%, 22.7%, and 7.8% of its exports respectively, and the exports to the erstwhile eastern bloc and developing countries make up 51.5% of its trade. The other countries it exports to, are Italy another neighbor, Greece and Bosnia and Herzegovina The main exports are aluminium, refined petroleum, cars, recreational boats and agricultural products such as dried legumes.

Tajikistan

Tajikistan is also a transitional economy, and one whose Gross Domestic Product (GDP) expanded at an annual rate of 9.6% between 2000 to 2007. This was stalled by the effects of the 2008 recession. The main sectors of its economy are services (53.9%), agriculture (23.3%), and industry (22.8%). Its main exports are aluminium, gold, zinc ore, lead, cotton, textiles, fruits, vegetable oil and electricity. It exports to Turkey, Kazakhstan, Switzerland, Iran, Afghanistan, Russia, China, and Italy, and exports to the erstwhile eastern bloc and developing countries make up 46.8 % of its trade.

Uzbekistan

Uzbekistan has been changing over to a market economy since its independence from the Soviet Union, with services (49.5%), industry (32%) and agriculture (18.5%) being the three main sectors of its economy. This is backed by a labor force which is literate and well trained. Globally, Uzbekistan has the largest open gold mine. Its main exports are gold, petroleum gas, cars, copper, machinery, mineral fertilizers, ferrous and non-ferrous metals, food products and cotton. It exports mainly to Switzerland (25.8%), China (17.6%), Kazakhstan (14.2%), Turkey (9.9%), Russia (8.4%), and Bangladesh (6.9%), and exports to the erstwhile eastern bloc and developing countries make up 41.1 % of its trade.

Trade Relations In Central Asia and Eastern Europe

Moldova, Serbia, Greece, Croatia, and Bulgaria also export to the erstwhile Eastern Bloc and developing countries in the surrounding vicinity, and this makes up 39.6%, 30.1%, 27.4%, 23.4%, and 23.4% of their respective export trade revenues. Moldova exports food, textiles and machinery to Romania, Russia, Italy, the United Kingdom, Belarus, and Germany.

Serbia exports cars, machinery, gas, and medicines to Italy, Germany, Bosnia and Herzegovina, Russia, and Romania. Greece exports petroleum, medicines, aluminium, fish and vegetables to Turkey, Italy, Germany, Bulgaria and Cyprus. Croatia exports machinery, textiles, chemicals, foodstuffs, and fuels to Italy, Slovenia,Germany, Bosnia and Herzegovina, Austria, and Serbia. Bulgaria exports textiles, iron and steel, machinery, and fuels to Germany, Italy, Turkey, Romania, Greece,and France.

The countries in this list trade substantially with each other. Switzerland, China, Germany, Austria, France, and the USA, among the rich countries at least, are their other dominant trade partners. However, at times Uzbekistan's has closed its borders for trade with with neighboring Kazakhstan, Kyrgyzstan, and Tajikistan over economic and geopolitical disputes.

Economies Most Dependent On Exports To Developing Countries Of The Former Eastern Bloc

RankCountryShare of Merchandise Exports Destined For Low- and Middle-Income Central Asian and European Economies
1Kyrgyzstan67.2%
2Georgia56.0%
3Montenegro51.4%
4Tajikistan46.8%
5Uzbekistan41.1%
6Moldova39.6%
7Serbia30.1%
8Greece27.4%
9Bulgaria23.4%
10Croatia23.3%

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