Georgia:
Economy

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Other pages in this profile of Georgia:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


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.
GDP (purchasing power parity)	$18.16 billion (2006 est.)
GDP (official exchange rate)	$5.301 billion (2006 est.)
GDP - real growth rate	9.4% (2006 est.)
GDP - per capita	$3,900 (2006 est.)
GDP - composition by sector	agriculture: 15% industry: 28.3% services: 56.7% (2006 est.)
Labor force	2.04 million (2004 est.)
Labor force - by occupation	agriculture: 40% industry: 20% services: 40% (1999 est.)
Unemployment rate	12.6% (2004 est.)
Population below poverty line	54.5% (2003)
Household income or consumption by percentage share	lowest 10%: 2% highest 10%: 30.3% (2003)
Distribution of family income - Gini index	40.4 (2003)
Inflation rate (consumer prices)	9.2% (2006 est.)
Investment (gross fixed)	28.1% of GDP (2006 est.)
Budget	revenues: $2.331 billion expenditures: $2.507 billion (2006 est.)
Agriculture - products	citrus, grapes, tea, hazelnuts, vegetables; livestock
Industries	steel, aircraft, machine tools, electrical appliances, mining (manganese and copper), chemicals, wood products, wine
Electricity - production	7.142 billion kWh (2005)
Electricity - consumption	7.354 billion kWh (2005)
Electricity - exports	122 million kWh (2005)
Electricity - imports	1.468 billion kWh (2005)
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
Oil - proved reserves	35 million bbl (1 January 2006)
Natural Gas - production	14.39 million cu m (2005 est.)
Natural Gas - consumption	1.415 billion cu m (2005 est.)
Natural Gas - exports	NA cu m
Natural Gas - imports	1.4 billion cu m (2005)
Current account balance	$-1.243 billion (2006 est.)
Exports	$1.667 billion (2006 est.)
Exports - commodities	scrap metal, machinery, chemicals; fuel reexports; citrus fruits, tea, wine
Exports - partners	Turkey 12.7%, Azerbaijan 9.4%, Russia 7.7%, Armenia 7.5%, Turkmenistan 7.3%, Bulgaria 6.4%, US 6%, Ukraine 5.8%, Canada 5%, Germany 4.6% (2006)
Imports	$3.686 billion (2006 est.)
Imports - commodities	fuels, machinery and parts, transport equipment, grain and other foods, pharmaceuticals
Imports - partners	Russia 15.2%, Turkey 14.2%, Germany 9.5%, Ukraine 8.7%, Azerbaijan 8.7% (2006)
Reserves of foreign exchange and gold	$930.8 million (2006 est.)
Debt - external	$2.04 billion (2004)
Economic aid - recipient	ODA, $309.8 million (2005 est.)
Currency (code)	lari (GEL)
Exchange rates	lari per US dollar - 1.78 (2006), 1.8127 (2005), 1.9167 (2004), 2.1457 (2003), 2.1957 (2002)
Fiscal year	calendar year

Georgia: Economy

Georgia:
Economy