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GEORGIA
COUNTRIES A-Z
Georgia Economy
Country Name: Georgia
Capital City: Tbilisi
Population: 4,661,473 (2006)
Population Growth: -0.34% (2006)
Currency: Lari (GEL)
Languages: Georgian
Area: 69,700 sq km
Inflation Rate: 10% (2006 est.)
Unemployment Rate: 12.6% (2004)
Domain extension: .ge
ECONOMIC DETAILS OF GEORGIA
ECONOMY OVERVIEW
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, and chemicals. The country imports the bulk of its energy needs, including natural gas and oil products. It has sizeable but underdeveloped hydropower capacity. Despite the severe damage the economy has suffered due to civil strife, 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 had 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. Due to concerted reform efforts, collection rates have improved considerably to roughly 60%, both in T'bilisi and throughout the regions. In addition, the reinvigorated privatization process has met with success, supplementing government expenditures on infrastructure, defense, and poverty reduction. Despite customs and financial (tax) enforcement improvements, smuggling remains a drain on the economy. Georgia also suffers from energy shortages due to aging and badly maintained infrastructure, as well as poor management. Continued reform in the management of state-owned power entities is essential to successful privatization and onward sustainability in this sector. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines and trade. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed investment and job opportunities. Nevertheless, high energy prices have compounded the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Russia remain major challenges.
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, and chemicals. The country imports the bulk of its energy needs, including natural gas and oil products. It has sizeable but underdeveloped hydropower capacity. Despite the severe damage the economy has suffered due to civil strife, 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 had 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. Due to concerted reform efforts, collection rates have improved considerably to roughly 60%, both in T'bilisi and throughout the regions. In addition, the reinvigorated privatization process has met with success, supplementing government expenditures on infrastructure, defense, and poverty reduction. Despite customs and financial (tax) enforcement improvements, smuggling remains a drain on the economy. Georgia also suffers from energy shortages due to aging and badly maintained infrastructure, as well as poor management. Continued reform in the management of state-owned power entities is essential to successful privatization and onward sustainability in this sector. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines and trade. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed investment and job opportunities. Nevertheless, high energy prices have compounded the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Russia remain major challenges.
GDP - purchasing power parity:
$17.88 billion (2006 est.)
GDP - real growth rate:
8% (2006 est.)
GDP - per capita:
$3,800 (2006 est.)
GDP - by sector (agriculture):
agriculture: 17.7%
GDP - by sector (industry):
industry: 27.5%
GDP - by sector (services):
services: 54.8% (2006 est.)
Export Partners:
UK 21.5%, Turkey 16.9%, US 5.8%, Spain 5.8%, Azerbaijan 5.6%, Turkmenistan 5.1% (2006)
Import Partners:
Russia 17%, Turkey 12.3%, US 7.9%, Azerbaijan 7.8%, Ukraine 7.4%, Germany 7.1%, Italy 4.9% (2006)
Export Commodities:
scrap metal, machinery, chemicals; fuel reexports; citrus fruits, tea, wine
Import Commodities:
fuels, machinery and parts, transport equipment, grain and other foods, pharmaceuticals
Exports Volume:
$1.761 billion (2006 est.)
Imports Volume:
$3.32 billion (2006 est.)
Labour Force:
2.04 million (2004 est.)
Unemployment Rate:
12.6% (2004 est.)
Population below poverty line:
54% (2001 est.)
Inflation Rate:
10% (2006 est.)
Investment (gross fixed):
30% of GDP (2006 est.)
Public Debt:
Agriculture Products:
citrus, grapes, tea, hazelnuts, vegetables; livestock
Industries:
steel, aircraft, machine tools, electrical appliances, mining (manganese and copper), chemicals, wood products, wine
Industrial Production Growth Rate:
3% (2000)
Electricity - production:
6.804 billion kWh (2004)
Electricity - consumption:
8.528 billion kWh (2004)
Electricity - exports:
200 million kWh (2004)
Electricity - imports:
2.4 billion kWh (2004)
Oil - production:
1,981 bbl/day (2004)
Oil - consumption:
13,000 bbl/day (2004 est.)
Oil - exports:
NA bbl/day
Oil - imports:
NA bbl/day
Natural gas - production:
20 million cu m (2004 est.)
Natural gas - consumption:
Natural gas - exports:
Natural gas - imports:
Current Account Balance:
-$735 million (2006 est.)
Currency Code:
lari (GEL)