Georgia:
Economy

Pages for other countries and territories

Other pages in this profile of Georgia:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	Definition Georgia's economy has sustained robust GDP growth of close to 10% in 2006 and 12% in 2007, based on strong inflows of foreign investment and robust government spending. However, a widening trade deficit and higher inflation are emerging risks to the economy. Areas of recent improvement include increasing foreign direct investment as well as growth in the construction, banking services and mining sectors. Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, aircraft and chemicals. The country imports nearly all its needed supplies of natural gas and oil products. It has sizeable hydropower capacity, a growing component of its energy supplies. Despite the severe damage the economy suffered due to civil strife in the 1990s, Georgia, with the help of the IMF and World Bank, has made substantial economic gains since 2000, achieving positive GDP growth and curtailing inflation. Georgia's GDP growth neared 10% in 2006 and 2007 despite restrictions on commerce with Russia. Areas of recent improvement include increased foreign direct investment as well as growth in the construction, banking services, and mining sectors. In addition, the reinvigorated privatization process has met with success. However, a widening trade deficit and higher inflation are emerging risks to the economy. Georgia has suffered from a chronic failure to collect tax revenues; however, the new government is making progress and has reformed the tax code, improved tax administration, increased tax enforcement, and cracked down on corruption. Government revenues have increased nearly four fold since 2003. Due to improvements in customs and financial (tax) enforcement, smuggling is a declining problem. Georgia has overcome the chronic energy shortages of the past by renovating hydropower plants and by bringing newly available natural gas supplies from Azerbaijan. It also has an increased ability to pay for more expensive gas imports from Russia. The country is pinning its hopes for long-term growth on a determined effort to reduce regulation, taxes and corruption in order to attract foreign investment. The construction on the Baku-T'bilisi-Ceyhan oil pipeline, the Baku-T'bilisi-Erzerum gas pipeline, and the Kars-Akhalkalaki Railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit point for gas, oil and other goods.
GDP (purchasing power parity)	Definition - World rank and map $20.5 billion (2007 est.)
GDP (official exchange rate)	Definition $10.29 billion (2007 est.)
GDP - real growth rate	Definition - World rank and map 12.4% (2007 est.)
GDP - per capita	Definition - World rank and map $4,700 (2007 est.)
GDP - composition by sector	Definition agriculture: 13.1% industry: 29.3% services: 57.6% (2007 est.)
Labor force	Definition 2.02 million (2007 est.)
Labor force - by occupation	Definition agriculture: 55.6% industry: 8.9% services: 35.5% (2006 est.)
Unemployment rate	Definition - World rank and map 13.6% (2006 est.)
Population below poverty line	Definition 31% (2006)
Household income or consumption by percentage share	Definition lowest 10%: 2.4% highest 10%: 27% (2005)
Distribution of family income - Gini index	Definition - World rank and map 40.4 (2003)
Inflation rate (consumer prices)	Definition - World rank and map 9.2% (2007 est.)
Investment (gross fixed)	Definition - World rank and map 29.5% of GDP (2007 est.)
Budget	Definition revenues: $3.68 billion expenditures: $3.08 billion (2007 est.)
Agriculture - products	Definition citrus, grapes, tea, hazelnuts, vegetables; livestock
Industries	Definition steel, aircraft, machine tools, electrical appliances, mining (manganese and copper), chemicals, wood products, wine
Industrial production growth rate	Definition - World rank and map 13% (2007 est.)
Electricity - production	Definition - World rank and map 8.338 billion kWh (2007)
Electricity - consumption	Definition - World rank and map 8.146 billion kWh (2007)
Electricity - consumption per capita	Definition - World rank and map 1,759.1 kWh (2007)
Electricity - exports	Definition 625 million kWh (2007)
Electricity - imports	Definition 433 million kWh (2007)
Oil - production	Definition - World rank and map 1,979 bbl/day (2005 est.)
Oil - consumption	Definition - World rank and map 13,400 bbl/day (2005 est.)
Oil - consumption per 1,000 people	Definition - World rank and map 2.9 bbl/day (2005 est.)
Oil - exports	Definition - World rank and map 2,400 bbl/day (2004)
Oil - imports	Definition - World rank and map 13,530 bbl/day (2004)
Oil - proved reserves	Definition - World rank and map 35 million bbl (1 January 2006 est.)
Natural gas - production	Definition - World rank and map 14.39 million cu m (2005 est.)
Natural gas - consumption	Definition - World rank and map 1.8 billion cu m (2007 est.)
Natural gas - consumption per capita	Definition - World rank and map 389 cu m (2007 est.)
Natural gas - exports	Definition - World rank and map 0 cu m (2005)
Natural gas - imports	Definition - World rank and map 1.264 billion cu m (2005)
Natural gas - proved reserves	Definition - World rank and map 8.147 billion cu m (1 January 2006 est.)
Current account balance	Definition - World rank and map -$2.028 billion (2007 est.)
Exports	Definition - World rank and map $1.97 billion (2007 est.)
Exports - commodities	Definition scrap metal, wine, mineral water, ores, vehicles, fruits and nuts
Exports - partners	Definition Turkey 12.6%, US 10.9%, Azerbaijan 7.9%, Armenia 5.9%, UK 5.8%, Bulgaria 4.9%, Ukraine 4.8%, Russia 4.7%, Turkmenistan 4.4% (2006)
Imports	Definition - World rank and map $4.79 billion (2007 est.)
Imports - commodities	Definition fuels, vehicles, machinery and parts, grain and other foods, pharmaceuticals
Imports - partners	Definition Turkey 14.1%, Russia 13.1%, Ukraine 8.5%, Azerbaijan 7.4%, Germany 6.8%, US 5%, Bulgaria 4.6% (2006)
Reserves of foreign exchange and gold	Definition - World rank and map $1.361 billion (31 December 2007 est.)
Debt - external	Definition - World rank and map $4.5 billion (2007)
Market value of publicly traded shares	Definition $1.39 billion (2007)
Economic aid - recipient	Definition ODA, $309.8 million (2005 est.)
Currency (code)	Definition lari (GEL)
Exchange rates	Definition lari per US dollar - 1.7 (2007), 1.78 (2006), 1.8127 (2005), 1.9167 (2004), 2.1457 (2003)
Fiscal year	Definition calendar year

Georgia: Economy

Georgia:
Economy