Georgia Economy Profile 2004

Economy - overview

Georgia's main economic activities include the cultivation of agricultural products such as citrus fruits, tea, hazelnuts, and grapes; 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. Its only sizable internal energy resource is hydropower. 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 1995, achieving positive GDP growth and curtailing inflation. However, the Georgian Government suffers from limited resources due to a chronic failure to collect tax revenues. Georgia also suffers from energy shortages; it privatized the T'bilisi distribution network in 1998, but collection rates are low, making the venture unprofitable. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines and trade. The start of construction on the Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas pipeline will bring much-needed investment and job opportunities.

GDP (purchasing power parity)

purchasing power parity - $12.18 billion (2003 est.)

GDP - real growth rate

5.5% (2003 est.)

GDP - per capita (PPP)

purchasing power parity - $2,500 (2003 est.)

GDP - composition by sector

agriculture: 20.5%
industry: 22.6%
services: 56.9% (2003 est.)

Population below poverty line

54% (2001 est.)

Household income or consumption by percentage share

lowest 10%: 2.3%
highest 10%: 27.9% (1996)

Inflation rate (consumer prices)

4.8% (2003 est.)

Labor force

2.1 million (2001 est.)

Labor force - by occupation

agriculture 40%, industry 20%, services 40% (1999 est.)

Unemployment rate

17% (2001 est.)

Distribution of family income - Gini index

37.1 (1996)

Budget

revenues: $603.5 million
expenditures: $700.5 million, including capital expenditures of NA (2003 est.)

Industries

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

Industrial production growth rate

3% (2000)

Electricity - production

7.27 billion kWh (2001)

Electricity - consumption

7.611 billion kWh (2001)

Electricity - exports

0 kWh (2001)

Electricity - imports

850 million kWh (2001)

Oil - production

2,000 bbl/day (2001 est.)

Oil - consumption

31,500 bbl/day (2001 est.)

Oil - imports

NA (2001)

Oil - exports

NA (2001)

Natural gas - production

60 million cu m (2001 est.)

Natural gas - consumption

1.16 billion cu m (2001 est.)

Natural gas - exports

0 cu m (2001 est.)

Natural gas - imports

1.1 billion cu m (2001 est.)

Agriculture - products

citrus, grapes, tea, hazelnuts, vegetables; livestock

Exports

$615 million (2003 est.)

Exports - commodities

scrap metal, machinery, chemicals; fuel reexports; citrus fruits, tea, wine

Exports - partners

Russia 17.7%, Turkey 17.3%, Turkmenistan 12.2%, Armenia 8.6%, Switzerland 6.9%, Ukraine 6.3%, UK 5.9% (2003)

Imports

$1.25 billion (2003 est.)

Imports - commodities

fuels, machinery and parts, transport equipment, grain and other foods, pharmaceuticals

Imports - partners

Russia 14%, UK 12.9%, Turkey 9.9%, Azerbaijan 8.3%, US 8%, Germany 7.3%, Ukraine 7%, France 4.9% (2003)

Debt - external

$1.8 billion (2002)

Economic aid - recipient

ODA $150 million (2000 est.)

Currency

lari (GEL)

Currency (code)

GEL

Exchange rates

lari per US dollar - 2.1457 (2003), 2.1957 (2002), 2.073 (2001), 1.9762 (2000), 2.0245 (1999)

Fiscal year

calendar year