Georgia2

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 in 2008 following the August 2008 conflict with Russia, and turned negative in 2009 as foreign direct investment and workers’ remittances declined in the wake of the global financial crisis, but rebounded in 2010. 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. 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, a growing component 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. However, the economic downturn of 2008-09 eroded the tax base and led to a decline in the budget surplus and an increase in public borrowing needs. The country is pinning its hopes for renewed growth on a determined effort to continue to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, but the economy faces a more difficult investment climate both domestically and internationally.

$22.32 billion (2010 est.)

$21.16 billion (2009 est.)

$22.02 billion (2008 est.)

$11.23 billion (2010 est.)

5.5% (2010 est.)

-3.9% (2009 est.)

2.3% (2008 est.)

$4,800 (2010 est.)

$4,600 (2009 est.)

$4,800 (2008 est.)

1.918 million (2007 est.)

16.4% (2009 est.)

13.6% (2006 est.)

31% (2006)

40.8 (2009)

37.1 (1996)

14.5% of GDP (2010 est.)

5.7% (2010 est.)

1.7% (2009 est.)

8% (25 December 2008)

NA% (31 December 2007)

25.52% (31 December 2009 est.)

21.24% (31 December 2008 est.)

$1.175 billion (31 December 2010 est)

$1.122 billion (31 December 2009 est)

$2.146 billion (31 December 2010 est.)

$1.28 billion (31 December 2009 est.)

$3.243 billion (31 December 2010 est.)

$3.569 billion (31 December 2009 est.)

$733.3 million (31 December 2009)

$327.3 million (31 December 2008)

$1.389 billion (31 December 2007)

citrus, grapes, tea, hazelnuts, vegetables; livestock

steel, aircraft, machine tools, electrical appliances, mining (manganese and copper), chemicals, wood products, wine

4% (2010 est.)

7.97 billion kWh (2008 est.)

6.902 billion kWh (2008 est.)

628 million kWh (2007 est.)

430 million kWh (2007 est.)

995 bbl/day (2009 est.)

13,000 bbl/day (2009 est.)

1,486 bbl/day (2008 est.)

16,590 bbl/day (2008 est.)

35 million bbl (1 January 2010 est.)

8 million cu m (2008 est.)

1.73 billion cu m (2008 est.)

0 cu m (2008 est.)

1.72 billion cu m (2008 est.)

8.495 billion cu m (1 January 2010 est.)

-$1.404 billion (2010 est.)

-$1.259 billion (2009 est.)

$2.29 billion (2010 est.)

$1.893 billion (2009 est.)

scrap metal, wine, mineral water, ores, vehicles, fruits and nuts

Turkey 17.87%, Azerbaijan 12.3%, Bulgaria 9.6%, Canada 8.78%, UK 7.49%, Ukraine 6.82%, Spain 5.27%, US 4.99% (2009)

$4.828 billion (2010 est.)

$4.293 billion (2009 est.)

fuels, vehicles, machinery and parts, grain and other foods, pharmaceuticals

Turkey 16.81%, Azerbaijan 9.72%, Ukraine 9.17%, Russia 7.39%, US 6.63%, Germany 6.22% (2009)

$2.35 billion (31 December 2010 est.)

$2.11 billion (31 December 2009 est.)

$3.381 billion (31 December 2009)

$7.711 billion (31 December 2008)

laris (GEL) per US dollar - 1.8009 (2010), 1.6705 (2009), 1.47 (2008), 1.7 (2007), 1.78 (2006)