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Georgia Economy Profile 2017

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Economy - overviewGeorgia's main economic activities include cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals in small-scale industries. The country imports nearly all of its needed supplies of natural gas and oil products. It has sizeable hydropower capacity that now provides most of its energy needs.

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. Construction of the Baku-T'bilisi-Ceyhan oil pipeline, the South Caucasus 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 hub for gas, oil, and other goods.

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 following the August 2008 conflict with Russia, and sunk to negative 4% in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-16, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high.

The country is pinning its hopes for renewed growth on a continued effort to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, with a focus on hydropower, agriculture, tourism, and textiles production. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. Georgia plans to improve the domestic investment environment through a four-year economic plan targeting the tax system, educational standards, infrastructure, and governance. The government has received high marks from the World Bank for improvements in business transparency. Since 2012, the Georgian Dream-led government has continued the previous administration's low-regulation, low-tax, free market policies, while modestly increasing social spending, strengthening anti-trust policy, and amending the labor code to comply with International Labor Standards. In mid-2014, Georgia signed an association agreement with the EU, paving the way to free trade and visa-free travel. Georgia is also seeking to expand trade with China, concluding substantive negotiations on a trade agreement in October 2016.
GDP (purchasing power parity)$37.27 billion (2016 est.)
$36.15 billion (2015 est.)
$35.17 billion (2014 est.)
note: data are in 2016 dollars
GDP (official exchange rate)$14.46 billion (2016 est.)
GDP - real growth rate3.1% (2016 est.)
2.8% (2015 est.)
4.6% (2014 est.)
GDP - per capita (PPP)$10,100 (2016 est.)
$9,700 (2015 est.)
$9,400 (2014 est.)
note: data are in 2016 dollars
Gross national saving21.3% of GDP (2016 est.)
20.4% of GDP (2015 est.)
19.2% of GDP (2014 est.)
GDP - composition, by end usehousehold consumption: 66.9%
government consumption: 16%
investment in fixed capital: 26.8%
investment in inventories: 3.8%
exports of goods and services: 38.1%
imports of goods and services: -51.6% (2016 est.)
GDP - composition by sectoragriculture: 9.2%
industry: 21.6%
services: 68.3% (2016 est.)
Population below poverty line9.2% (2010 est.)
Labor force2.022 million (2015 est.)
Labor force - by occupationagriculture: 55.6%
industry: 8.9%
services: 35.5% (2006 est.)
Unemployment rate12.1% (2016 est.)
12% (2015 est.)
Unemployment, youth ages 15-24total: 35.6%
male: 35.3%
female: 36.4% (2013 est.)
Household income or consumption by percentage sharelowest 10%: 2%
highest 10%: 31.3% (2008)
Distribution of family income - Gini index40.1 (2014)
46 (2011)
Budgetrevenues: $4.266 billion
expenditures: $4.541 billion (2016 est.)
Taxes and other revenues29.5% of GDP (2016 est.)
Budget surplus (+) or deficit (-)-1.9% of GDP (2016 est.)
Public debt42.4% of GDP (2016 est.)
41.4% of GDP (2015 est.)
note: data cover general government debt, and includes debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities; Georgia does not maintain intra-governmental debt or social funds
Inflation rate (consumer prices)2% (2016 est.)
4% (2015 est.)
Central bank discount rate6.5% (7 Setpember 2016)
7% (23 September 2015)
note: this is the Refinancing Rate, the key monetary policy rate of the National Bank of Georgia
Commercial bank prime lending rate12.9% (31 December 2016 est.)
12.49% (31 December 2015 est.)
Stock of narrow money$2.165 billion (31 December 2016 est.)
$2.063 billion (31 December 2015 est.)
Stock of broad money$2.67 billion (31 December 2016 est.)
$2.402 billion (31 December 2015 est.)
Stock of domestic credit$7.186 billion (31 December 2016 est.)
$6.946 billion (31 December 2015 est.)
Market value of publicly traded shares$1.155 billion (31 December 2015 est.)
$943.4 million (31 December 2012 est.)
$795.7 million (31 December 2011 est.)
Agriculture - productscitrus, grapes, tea, hazelnuts, vegetables; livestock
Industriessteel, machine tools, electrical appliances, mining (manganese, copper, gold), chemicals, wood products, wine
Industrial production growth rate1.4% (2016 est.)
Current Account Balance-$1.764 billion (2016 est.)
-$1.68 billion (2015 est.)
Exports$2.926 billion (2016 est.)
$3.043 billion (2015 est.)
Exports - commoditiesvehicles, ferro-alloys, fertilizers, nuts, scrap metal, gold, copper ores
Exports - partnersAzerbaijan 10.9%, Bulgaria 9.7%, Turkey 8.4%, Armenia 8.2%, Russia 7.4%, China 5.7%, US 4.7%, Uzbekistan 4.4% (2015)
Imports$6.803 billion (2016 est.)
$7.73 billion (2015 est.)
Imports - commoditiesfuels, vehicles, machinery and parts, grain and other foods, pharmaceuticals
Imports - partnersTurkey 17.2%, Russia 8.1%, China 7.6%, Azerbaijan 7%, Ireland 5.9%, Ukraine 5.9%, Germany 5.6% (2015)
Reserves of foreign exchange and gold$2.855 billion (31 December 2016 est.)
$2.521 billion (31 December 2015 est.)
Debt - external$13.65 billion (31 December 2016 est.)
$13.31 billion (31 December 2015 est.)
Stock of direct foreign investment - at home$13.68 billion (31 December 2016 est.)
$12.64 billion (31 December 2015 est.)
Stock of direct foreign investment - abroad$1.933 billion (31 December 2016 est.)
$1.773 billion (31 December 2015 est.)
Exchange rateslaris (GEL) per US dollar -
2.18 (2016 est.)
2.2694 (2015 est.)
2.2694 (2014 est.)
1.7657 (2013 est.)
1.65 (2012 est.)
Fiscal yearcalendar year

Source: CIA World Factbook
This page was last updated on July 9, 2017

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