Georgia has an economy in transition, influenced by all the years of Soviet domination. Its relationships with its Caucasian neighbors, especially Russia, are sometimes sources of instability, as it was shown by the conflict in August 2008 in South Ossetia and in Abkhazia, which had a negative impact on economic growth and continues to hinder foreign investment, despite the strong support of the international community. Georgia's growth and economic attractiveness, which relies largely on foreign investment, have been challenged by the conflict with Russia and later by the international economic crisis.
The fiscal and privatization reforms which were introduced by the government in 2012 have contributed in 2013 to an environment favorable to economic development and is making Georgia one of the most advanced countries in terms of the current transition in the region in 2014. The government actively seeks to attract international investors offering appealing tax and legal advantages. The energy and banking sectors are now completely privatized.
Georgia has a promising tertiary economy, but it is strongly dependent on its political sphere. With a growth of 2.5% in 2013 (6% in 2012) and the real good management of its public finances (the budget deficit has been lowered from 6.6% of the GDP in 2010 to 3.5% in 2013) the country has confirmed some good results (growth is estimated to be around 4.2% in 2014). But the financial situation is still fragile -with in particular a large current account deficit- and its level of growth still very much depends on external factors, in particular the level of growth in Europe.
The main challenge remains the reduction of poverty, which still affects, in 2014, about a third of the population.
|Main Indicators||2011||2012||2013||2014||2015 (e)|
|GDP (billions USD)||14.44||15.85||16.13||16.13||17.46|
|GDP (Constant Prices, Annual % Change)||7.2||6.2||3.2e||5.0e||5.0|
|GDP per Capita (USD)||3,230||3,523||3e||3,607e||3,918|
|General Government Balance (in % of GDP)||-3.7||-3.8||-1.4e||-2.8||-2.3|
|General Government Gross Debt (in % of GDP)||33.8||32.3||32.2||33.9e||33.6|
|Inflation Rate (%)||8.5||-0.9||-0.5||4.6||4.9|
|Unemployment Rate (% of the Labor Force)||15.1||15.0||14.6||-||-|
|Current Account (billions USD)||-1.84||-1.85||-0.95||-1.35e||-1.38|
|Current Account (in % of GDP)||-12.8||-11.7||-5.9e||-8.4||-7.9|
Source: IMF - World Economic Outlook Database , Last Available Data
Note: (e) Estimated Data
Agriculture has contributed to 8.5% to the GDP in 2013but the yield is very low. The main agricultural products are wheat, corn, barley, potatoes, citrus fruits and other fruits, tobacco, wine grapes and rice.
Georgia is rich in minerals, especially manganese (mined mainly in Chiatura and Imeritia), copper, tungsten, marble, and oil. Even though Georgia has abundant hydroelectric energy, it needs to import a significant volume of its fuel. The construction of an oil pipeline from the Caspian Sea to the center of the Black Sea at Supsa (in Georgia) is going to attract substantial foreign investment.
The industrial sector is less developed and includes mainly food processing in full expansion, manufacturing of transport equipment, electric motors, iron, steel, aircraft, chemical products and textiles. The industrial and mining sectors contribute 21.6% to the GDP.
The most dynamic sector is the services sector (particularly hotels, restaurants, transport and telecommunications), which contributes to 70% to the GDP. Several beach resorts and spas that attract large numbers of tourists can be found along the Black Sea. Tourism is one of the government's priorities with the development of infrastructures in the coastal area of Adjara and ski stations in Svaneti.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||53.4||10.4||36.2|
|Value Added (in % of GDP)||9.4||24.0||66.6|
|Value Added (Annual % Change)||11.3||2.3||2.6|
Source: World Bank - Last Available Data.
|Georgian Lari (GEL) - Average Annual Exchange Rate For 1 USD||1.67||1.78||1.69||1.65||1.66|
Source: World Bank - Last Available Data.
The Economic freedom index measure ten components of economic freedom, grouped into four broad categories or pillars of economic freedom: Rule of Law (property rights, freedom from corruption); Limited Government (fiscal freedom, government spending); Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and Open Markets (trade freedom, investment freedom, financial freedom). Each of the freedoms within these four broad categories is individually scored on a scale of 0 to 100. A country’s overall economic freedom score is a simple average of its scores on the 10 individual freedoms.
Georgia is very open to international trade. It maintains no currency controls, allows foreign investment in almost all sectors and has implemented an impressive privatization plan, particularly in the allocation of land. The share of foreign trade is nearly 90%. Georgia was the second former Soviet Union country to join the WTO.
Since the embargo imposed by Russia on certain food products, the two countries have ceased all trading with each other. The embargo has weakened the agricultural sector, which represents 10% of the GDP.
Its three main export partners are Azerbaijan, Turkey and Armenia. 20% of exports went to the EU in 2013. Georgia exports mainly iron and steel, wine, aircrafts, fruits, tea and hazelnuts.
The main import commodities are mineral fuels, oil, vehicles, electronic equipment and pharmaceutical products. In 2013 its main suppliers have been Turkey, Ukraine and Azerbaijan. The EU countries contribute to more than 30% of the country's imports. Its trade balance is traditionally negative.
|Foreign Trade Indicators||2009||2010||2011||2012||2013|
|Imports of Goods (million USD)||4,366||5,257||7,058||7,842||7,874|
|Exports of Goods (million USD)||1,134||1,678||2,189||2,377||2,909|
|Imports of Services (million USD)||910||996||1,201||1,362||1,471|
|Exports of Services (million USD)||1,225||1,514||1,916||2,445||2,950|
|Imports of Goods and Services (in % of GDP)||48.9||52.8||54.8||57.8||57.6|
|Exports of Goods and Services (in % of GDP)||29.7||35.0||36.2||38.2||44.7|
|Trade Balance (million USD)||-2,417||-2,628||-3,500||-4,226||-3,506|
|Trade Balance (Including Service) (million USD)||-2,065||-2,080||-2,746||-3,112||-2,084|
|Foreign Trade (in % of GDP)||78.7||87.7||91.0||95.9||102.3|
Source: WTO - World Trade Organization ; World Bank , Last Available Data
(% of Exports)
|See More Countries||45.7%|
(% of Imports)
|See More Countries||50.9%|
Source: Comtrade, Last Available Data
|- bn USD of products exported in 2014|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||18.1%|
|Copper ores and concentratesCopper ores and concentrates||8.7%|
|Other nuts, fresh or dried, whether or not shelled...Other nuts, fresh or dried, whether or not shelled or peeled (excl. coconuts, brazil nuts and cashew nuts)||6.4%|
|Wine of fresh grapes, incl. fortified wines; grape...Wine of fresh grapes, incl. fortified wines; grape must, partly fermented and of an actual alcoholic strength of > 0,5% vol or grape must with added alcohol of an actual alcoholic strength of > 0,5% vol||6.3%|
|See More Products||50.5%|
|- bn USD of products imported in 2014|
|Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals||10.7%|
|Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702)||8.3%|
|Petroleum gas and other gaseous hydrocarbonsPetroleum gas and other gaseous hydrocarbons||4.3%|
|Medicaments consisting of mixed or unmixed...Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, put up in measured doses incl. those in the form of transdermal administration or in forms or packings for retail sale (excl. goods of heading 3002, 3005 or 3006)||3.7%|
|Transmission apparatus for radio-telephony,...Transmission apparatus for radio-telephony, radio-telegraphy, radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras; still image video cameras and other video camera recorders; digital cameras||2.0%|
|See More Products||71.0%|
Source: Comtrade, Last Available Data
|- bn USD of services exported in 2012|
|Personal travelPersonal travel||33.84%|
|Education-related expenditureEducation-related expenditure||0.21%|
|Health-related expenditureHealth-related expenditure||0.04%|
|Business travelBusiness travel||21.68%|
|Expenditure by seasonal and...Expenditure by seasonal and border workers||0.05%|
|Air transportAir transport||6.53%|
|Rail transportRail transport||6.43%|
|Sea transportSea transport||5.12%|
|Road transportRoad transport||4.31%|
|Operational leasing servicesOperational leasing services||1.36%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||1.20%|
|Other business servicesOther business services||0.47%|
|Advertising, market research,...Advertising, market research, and public opinion polling||0.28%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||0.23%|
|Business and management...Business and management consulting and public relations services||0.11%|
|Legal servicesLegal services||0.10%|
|Accounting, auditing,...Accounting, auditing, bookkeeping, and tax consulting services||0.02%|
|Architectural, engineering,...Architectural, engineering, and other technical services||0.19%|
|Research and developmentResearch and development||0.03%|
|Merchanting and other trade-related...Merchanting and other trade-related services||0.11%|
|Other trade-related servicesOther trade-related services||0.11%|
|Telecommunications servicesTelecommunications services||1.81%|
|Postal and courier servicesPostal and courier services||0.13%|
|Freight insuranceFreight insurance||0.64%|
|Auxiliary servicesAuxiliary services||0.05%|
|Other direct insuranceOther direct insurance||0.03%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.44%|
|Health servicesHealth services||0.04%|
|Education servicesEducation services||0.02%|
|Audiovisual and related servicesAudiovisual and related services||0.19%|
|Embassies and consulatesEmbassies and consulates||1.57%|
|Military units and agenciesMilitary units and agencies||0.63%|
|Construction abroadConstruction abroad||0.30%|
|Information servicesInformation services||0.08%|
|Other information provision...Other information provision services||0.08%|
|Computer servicesComputer services||0.07%|
|- bn USD of services imported in 2012|
|Road transportRoad transport||23.15%|
|Sea transportSea transport||16.60%|
|Air transportAir transport||12.69%|
|Rail transportRail transport||3.28%|
|Business travelBusiness travel||12.40%|
|Expenditure by seasonal and...Expenditure by seasonal and border workers||1.31%|
|Personal travelPersonal travel||5.37%|
|Education-related expenditureEducation-related expenditure||3.20%|
|Health-related expenditureHealth-related expenditure||0.06%|
|Freight insuranceFreight insurance||8.35%|
|Other direct insuranceOther direct insurance||0.25%|
|Miscellaneous business,...Miscellaneous business, professional, and technical services||3.87%|
|Legal, accounting, management...Legal, accounting, management consulting, and public relations||1.99%|
|Business and management...Business and management consulting and public relations services||1.63%|
|Legal servicesLegal services||0.26%|
|Accounting, auditing,...Accounting, auditing, bookkeeping, and tax consulting services||0.10%|
|Architectural, engineering,...Architectural, engineering, and other technical services||1.19%|
|Other business servicesOther business services||0.41%|
|Advertising, market research,...Advertising, market research, and public opinion polling||0.18%|
|Research and developmentResearch and development||0.10%|
|Agricultural, mining, and...Agricultural, mining, and on-site processing services||0.01%|
|Waste treatment and...Waste treatment and depollution||0.01%|
|Operational leasing servicesOperational leasing services||1.93%|
|Merchanting and other trade-related...Merchanting and other trade-related services||0.21%|
|Other trade-related servicesOther trade-related services||0.21%|
|Telecommunications servicesTelecommunications services||1.42%|
|Postal and courier servicesPostal and courier services||0.06%|
|Other personal, cultural, and...Other personal, cultural, and recreational services||0.59%|
|Health servicesHealth services||0.08%|
|Education servicesEducation services||0.06%|
|Audiovisual and related servicesAudiovisual and related services||0.29%|
|Embassies and consulatesEmbassies and consulates||4.09%|
|Military units and agenciesMilitary units and agencies||0.26%|
|Computer servicesComputer services||0.55%|
|Information servicesInformation services||0.25%|
|Other information provision...Other information provision services||0.25%|
|Construction in the compiling...Construction in the compiling economy||0.42%|
Source: Comtrade, Last Available Data
The world rankings, published annually, measures the violations of press freedom worldwide. It reflects the degree of freedom enjoyed by journalists, the media and digital citizens of each country and the means used by states to respect and uphold this freedom. Finally, a note and a position are assigned to each country. To compile this index, Reporters Without Borders (RWB) prepared a questionnaire sent to partner organizations,150 RWB correspondents, journalists, researchers, jurists and activists of human rights, including the main criteria - 44 in total - to assess the situation of press freedom in a given country. It includes every kind of direct attacks against journalists and digital citizens (murders, imprisonment, assault, threats, etc.) or against the media (censorship, confiscation, searches and harassment etc.).
The Indicator of Political Freedom provides an annual evaluation of the state of freedom in a country as experienced by individuals. The survey measures freedom according to two broad categories: political rights and civil liberties. The ratings process is based on a checklist of 10 political rights questions (on Electoral Process, Political Pluralism and Participation, Functioning of Government) and 15 civil liberties questions (on Freedom of Expression, Belief, Associational and Organizational Rights, Rule of Law, Personal Autonomy and Individual Rights). Scores are awarded to each of these questions on a scale of 0 to 4, where a score of 0 represents the smallest degree and 4 the greatest degree of rights or liberties present. The total score awarded to the political rights and civil liberties checklist determines the political rights and civil liberties rating. Each rating of 1 through 7, with 1 representing the highest and 7 the lowest level of freedom, corresponds to a range of total scores.
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