Georgia's economy sustained GDP growth of more than 10% in 2006-07 based on
strong inflows of foreign investment and robust government spending. However,
GDP growth slowed to 2% in 2008 following the August 2008 conflict with Russia,
and the economy contracted by nearly 5% in 2009 as foreign direct investment
and workers' remittances declined in the wake of the global recession.
Georgia's main economic activities include the cultivation of agricultural
products such as grapes, citrus fruits, and hazelnuts; mining of manganese and
copper; and the output of a small industrial sector producing alcoholic and
non-alcoholic beverages, metals, machinery, aircraft, and chemicals. Areas of
recent improvement include growth in the construction, banking services, and
mining sectors, but reduced availability of external investment and the slowing
regional economy are emerging risks. The country imports nearly all its needed
supplies of natural gas and oil products. It has sizeable hydropower capacity, which
comprises a growing portion of its energy supplies. Georgia has overcome the
chronic energy shortages and gas supply interruptions of the past by renovating
hydropower plants and by increasingly relying on natural gas imports from
Azerbaijan instead of from Russia. 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. Georgia has historically suffered from a chronic failure to
collect tax revenues; however, the government, since coming to power in 2004,
has simplified the tax code, improved tax administration, increased tax
enforcement, and cracked down on petty corruption.
GDP (2011): $14.4385 billion.
GDP per capita (2011): $3230.7.
GDP growth (2011): 7.2%.
Annual Average Inflation Rate (January, 2013): 1.1%.
Natural Resources: Forests, hydropower, nonferrous metals, manganese, iron ore, copper, citrus fruits, tea, wine.
IndustryTypes: Steel, aircraft, machine tools, foundry equipment (automobiles, trucks, and tractors), tower cranes, electric welding equipment, fuel re-exports, machinery for food packing, electric motors, textiles, shoes, chemicals, wood products, bottled water, and wine.
Trade (2012): Exports: $2.377 billion. Partners: Turkey, United States of America, Azerbaijan, United Kingdom, Bulgaria, Ukraine, Armenia, Turkmenistan. Imports: $7.842 billion. Partners: Turkey, Russia, Ukraine, Azerbaijan, Germany, United States of America, Bulgaria.
Labor force (2011): 1.9593 million.
Unemployment rate (2011): 15.1%.