Asia > Georgia > Economy

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Agriculture > products citrus, grapes, tea, hazelnuts, vegetables; livestock
Aid as % of GDP	5.6%		[46th of 129]
Big Mac Index	$2.00		[45th of 65]
Debt > External	$4,500,000,000.00		[96th of 136]
Distribution of family income > Gini index	40.4		[16th of 43]
Economic freedom	1.6		[118th of 156]
Economy > Overview 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.
Exports	$2,104,000,000.00		[121st of 189]
GDP	$7,550,170,000.00		[109th of 203]
GDP > PPP	$13,461,000,000.00		[116th of 163]
GDP > Real growth rate	12%		[7th of 198]
GINI index	40.44		[17th of 40]
Gross National Income	$3,094,980,000.00		[119th of 172]
Human Development Index	0.732		[100th of 178]
Income category	Low income
Income distribution > Poorest 10%	2.3%		[73rd of 114]
Income distribution > Richest 10%	27.9%		[72nd of 114]
Population below poverty line	31%		[8th of 46]
Poverty > Share of all poor people	0.01 % of world's poor		[77th of 80]
Tourist arrivals	313,000		[88th of 152]

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