Economic overview Georgia, in 34 editions.

Among the former Soviet republics, Georgia is has been noted for its Black Sea
tourist industry, its large output of citrus fruits and tea, and the amazing
diversity of an
industrial sector that accounted, however, for less than 2%
of the USSR's
output. Another salient characteristic of the economy has been
a flourishing
private sector (compared with the other republics). Almost 30%
About 25% of the labor
force is employed in agriculture and 18% in industry. agriculture. Mineral
resources consist of manganese and
copper, and, to a lesser extent,
molybdenum, arsenic, tungsten, and mercury.
Except for very small quantities
of domestic oil, gas, and coal, fuel must
be imported from neighboring
republics. Oil and its products are have been
delivered by pipeline from Azerbaijan to
the port of Batumi for export and
local refining. Gas is has been supplied in
pipelines from Krasnodar and Stavropol'. Georgia is nearly self-sufficient
in electric power, thanks to abundant hydropower stations as well as some
thermal power stations. Stavropol'. The dismantling of central economic controls is
being has been delayed by
political factionalism, marked by bitter armed struggles between
the elected government and struggles. In early 1993 the opposition, and industrial output seems
Georgian economy was operating at well less than half capacity due to
have fallen more steeply disruptions in Georgia fuel supplies and vital transportation links as a result of
conflicts in 1991 than Abkhazia and South Ossetia, antigovernment activity in any other of the former Western
Soviet republics. Georgia, and Azerbaijani pressure against Georgian assistance for Armenia.
To prevent further restore economic decline, viability, Georgia must
establish domestic peace and
must maintain economic ties to the other former
Soviet republics while
developing new links to the West.

Georgia's economy has traditionally revolved around Black
Sea tourism;
cultivation of citrus fruits, tea, and grapes; mining of
manganese and
copper; and a small industrial sector producing wine, metals,
metals, machinery, chemicals, and textiles. The country imports the
bulk of
its energy needs, including natural gas and coal. oil products. Its
only sizable
domestic energy resource is hydropower. Since 1990, widespread
widespread conflicts, e.g., in Abkhazia, South Ossetia, and Mengrelia, severely
Mingreliya, have severely aggravated the economic crisis resulting
from the disintegration of
the Soviet command economy in December
1991. Throughout 1993, 1993 and 1994, much of
industry was functioning at
only 20% of capacity; heavy disruptions in
agricultural cultivation
were reported; and tourism was shut down. The
country is precariously
dependent on US and EU humanitarian grain
shipments, as most other
foods are priced beyond reach of the average
citizen. Georgia is also
suffering from an acute energy crisis, as it
is having problems paying
for even minimal imports. Georgia is pinning
its hopes for recovery on
reestablishing trade ties with Russia and on
developing international
transportation through the key Black Sea
ports of P'ot'i and Bat'umi.
The government began a tenuous program in 1994 aiming to stabilize
prices and reduce large consumer subsidies.

Georgia's economy has traditionally revolved
around Black
Sea tourism; cultivation of citrus fruits, tea, and
grapes; mining of
manganese and copper; and a small industrial
sector producing wine,
metals, machinery, chemicals, and textiles.
The country imports the
bulk of its energy needs, including natural
gas and oil products. Its
only sizable domestic internal energy resource is
hydropower. Since 1990,
widespread conflicts, e.g., in Abkhazia, South Ossetia, and
Mingreliya, have severely aggravated the economic crisis resulting
from the disintegration of 1991 the Soviet command economy in December
1991. Throughout 1993 and 1994, much of industry was functioning at
only 20% of capacity; heavy disruptions in agricultural cultivation
were reported; and tourism was shut down. The country is precariously
dependent on US and EU humanitarian grain shipments, as most other has sustained severe damage from
foods are priced beyond reach of the average citizen. civil strife. Georgia is also
has been suffering from an acute energy crisis,
shortages, as it is having problems paying
for even minimal imports.
Georgia is pinning its hopes for long-term recovery largely on
reestablishing trade ties with Russia and on developing international
international transportation through the key Black Sea ports of
P'ot'i and Bat'umi. Statistical estimates on Georgia are subject to
The government began a tenuous program in 1994 aiming to stabilize particularly wide margin of error, even compared with other FSU
prices countries. The GDP estimate below probably does not reflect much of
its grass roots economic activity. GDP is supplemented by
considerable EU and reduce large consumer subsidies. US humanitarian aid.

Georgia's economy has traditionally revolved
around Black Sea tourism; cultivation of citrus fruits, tea, and
grapes; mining of manganese and copper; and output of a small industrial
industrial sector producing wine, metals, machinery, chemicals, and textiles.
textiles. The country imports the bulk of its energy needs, including natural
natural gas and oil products. Its only sizable internal energy
resource is
hydropower. Since 1991 Despite the economy has sustained severe damage from the economy has
suffered due to civil strife. Georgia strife, Georgia, with the help of the IMF and
World Bank, has made substantial economic gains in 1995-96, pushing
GDP growth and slashing inflation. Georgia had been suffering from
acute energy
shortages, as it is having problems paying for even minimal imports. although energy deliveries improved in 1996.
Georgia is pinning its hopes for long-term recovery largely on
reestablishing trade ties with Russia and on developing the development
of an international transportation corridor through the key Black Sea
ports of
P'ot'i and Bat'umi. Statistical estimates on Georgia are subject The decision in 1996 to construct an
a particularly wide margin of error, even compared with other FSU early Caspian oil pipeline through Georgia underscores the viability
countries. The GDP estimate below probably does not reflect much of
its grass roots economic activity. GDP is supplemented by such a corridor and may spur greater western investment in the
considerable EU economy. A growing trade deficit and US humanitarian aid. political uncertainties cloud the
short-term economic picture.

Georgia's economy has traditionally revolved
around
Black Sea tourism; cultivation of citrus fruits, tea, and
grapes;
mining of manganese and copper; and output of a small
industrial
sector producing wine, metals, machinery, chemicals, and
textiles. 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 in 1995-96, pushing
1995-97, increasing GDP growth and
slashing inflation. Georgia had been suffering still suffers from
acute energy shortages,
although energy deliveries improved in 1996.
are steadily improving. Georgia is pinning
its hopes for long-term recovery on the development
of an
international transportation corridor through the key Black Sea
ports
of P'ot'i and Bat'umi. The decision in 1996 to construct an
early construction of a Caspian oil pipeline through Georgia underscores the viability
of such a corridor and may through Georgia-scheduled to open in early 1999-should spur greater
western investment in the
economy. A growing trade deficit deficit, continuing
problems with corruption, and political uncertainties cloud the
short-term economic picture.

Georgia's economy has traditionally revolved around
around Black Sea tourism; cultivation of citrus fruits, tea, and grapes;
grapes; mining of manganese and copper; and output of a small industrial
industrial sector producing wine, metals, machinery, chemicals, and
textiles. 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 in 1995-97, since 1995,
increasing GDP growth and
slashing inflation. The Georgian economy
suffered some setbacks in late 1998, including a large budget
deficit due to a failure to collect tax revenue and to the impact of
the Russian economic crisis. Georgia also still suffers from energy shortages,
although energy shortages; it privatized the distribution network in 1998, and
deliveries are steadily improving. Georgia is pinning
its hopes for
long-term recovery on the development of an
international
transportation corridor through the key Black Sea ports
of P'ot'i
and Bat'umi. The construction of a Caspian oil pipeline
through Georgia-scheduled
Georgia--scheduled to open in early 1999-should 1999--should spur greater Western
western investment in the economy. A The global economic slowdown, a growing
trade deficit, continuing
problems with corruption, and political
uncertainties cloud the
short-term economic picture.

Georgia's economy has traditionally revolved
around Black Sea tourism; cultivation of citrus fruits, tea, and
grapes; mining of manganese and copper; and output of a small
industrial sector producing wine, metals, machinery, chemicals, and
textiles. 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, made substantial economic gains since 1995,
increasing GDP growth and slashing inflation. The Georgian economy
suffered some setbacks in late 1998, including a continues to experience large budget
deficit deficits due to a failure to collect tax revenue and to the impact of
the Russian economic crisis. revenues. Georgia also still suffers from energy
shortages; it privatized the distribution network in 1998, and
deliveries are steadily improving. Georgia is pinning its hopes for
long-term recovery on the development of an international
transportation corridor through the key Black Sea ports of P'ot'i
and Bat'umi. The construction of a Caspian oil pipeline through
Georgia--scheduled to open in early 1999--should spur greater Western
investment in the economy. The global economic slowdown, a growing
trade deficit, continuing problems with tax evasion and corruption, and political
uncertainties cloud the short-term economic picture. However, revived investment could spur higher economic growth in 2000, perhaps up to 6%.

Georgia's economy has traditionally revolved around Black Sea tourism; cultivation of citrus fruits, tea, and grapes; mining of manganese and copper; and output of a small industrial sector producing wine, metals, machinery, chemicals, and textiles. 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, increasing GDP growth and slashing inflation. The Georgian economy continues to experience large budget deficits due to a failure to collect tax revenues. Georgia also still suffers from energy shortages; it privatized the distribution network in 1998, and deliveries are steadily improving. Georgia The country is pinning its hopes for long-term recovery on the development of an international transportation corridor through the key Black Sea ports of P'ot'i and Bat'umi. The growing trade deficit, continuing problems with tax evasion and corruption, and political uncertainties cloud the short-term economic picture. However, revived investment could spur higher economic growth in 2000, perhaps up to 6%.

Georgia's economy has traditionally revolved around Black Sea tourism; 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 wine, alcoholic and nonalcoholic beverages, metals, machinery, chemicals, and textiles. 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, increasing achieving positive GDP growth and slashing curtailing inflation. The However, the Georgian economy continues to experience large budget deficits government suffers from limited resources due to a chronic failure to collect tax revenues. Georgia also still suffers from energy shortages; it privatized the T'bilisi distribution network in 1998, and deliveries but collection rates are steadily improving. low, making the venture unprofitable. The country is pinning its hopes for long-term recovery growth on the development of an international transportation corridor through the key Black Sea ports of P'ot'i its role as a transit state for pipelines and Bat'umi. trade. The growing trade deficit, continuing problems with tax evasion and corruption, start of construction on the Baku-T'bilisi-Ceyhan oil pipeline and political uncertainties cloud the short-term economic picture. Baku-T'bilisi-Erzerum gas pipeline will bring much-needed investment and job opportunities in 2003.

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 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 in 2003. opportunities.

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 has suffered from limited resources due to a chronic failure to collect tax revenues. Georgia's new government is making progress in reforming the tax code, enforcing taxes, and cracking down on corruption. Georgia also suffers from energy shortages; it privatized the T'bilisi electricity distribution network in 1998, but payment collection rates are remain low, making both in T'bilisi and throughout the venture unprofitable. regions. 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 have brought much-needed investment and job opportunities.

Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, tea, hazelnuts, and grapes; 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. Its only sizable internal energy resource is hydropower. 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 1995, 2000, achieving positive GDP growth and curtailing inflation. However, the Georgian Government has Georgia had suffered from limited resources due to a chronic failure to collect tax revenues. Georgia's revenues; however, the new government is making progress in reforming and has reformed the tax code, enforcing taxes, improved tax administration, increased tax enforcement, and cracking cracked down on corruption. 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 is a drain on the economy. Georgia also suffers from energy shortages; it privatized the T'bilisi electricity distribution network in 1998, but payment shortages due to aging and badly maintained infrastructure, as well as poor management. Due to concerted reform efforts, collection rates remain low, have improved considerably to roughly 60%, both in T'bilisi and throughout the regions. 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 in 2006 will compound the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Russia remain major challenges.

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 is remains a drain on the economy. Georgia also suffers from energy shortages due to aging and badly maintained infrastructure, as well as poor management. Due to concerted reform efforts, collection rates have improved considerably to roughly 60%, both in T'bilisi and throughout the regions. 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 in 2006 will compound have compounded the pressure on the country's inefficient energy sector. Restructuring the sector and finding energy supply alternatives to Russia remain major challenges.

Georgia's economy has sustained robust GDP growth of close to 10% in 2006 and 12% in 2007, based on strong inflows of foreign investment and robust government spending. However, a widening trade deficit and higher inflation are emerging risks to the economy. Areas of recent improvement include increasing foreign direct investment as well as growth in the construction, banking services and mining sectors. 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. The country imports the bulk of nearly all its energy needs, including needed supplies of natural gas and oil products. It has sizeable but underdeveloped hydropower capacity. capacity, a growing component of its energy supplies. Despite the severe damage the economy has suffered due to civil strife, strife in the 1990s, 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's GDP growth neared 10% in 2006 and 2007 despite restrictions on commerce with Russia. Areas of recent improvement include increased foreign direct investment as well as growth in the construction, banking services, and mining sectors. In addition, the reinvigorated privatization process has met with success. However, a widening trade deficit and higher inflation are emerging risks to the economy. Georgia had has 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 Government revenues have improved considerably increased nearly four fold since 2003. Due to roughly 60%, both improvements 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, enforcement, smuggling remains is a drain on the economy. declining problem. Georgia also suffers from has overcome the chronic 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 the past by renovating hydropower plants and onward sustainability in this sector. by bringing newly available natural gas supplies from Azerbaijan. It also has an increased ability to pay for more expensive gas imports from Russia. The country is pinning its hopes for long-term growth on its role as a transit state for pipelines determined effort to reduce regulation, taxes and trade. corruption in order to attract foreign investment. The construction on the Baku-T'bilisi-Ceyhan oil pipeline and pipeline, the Baku-T'bilisi-Erzerum gas pipeline have brought much-needed investment pipeline, and job opportunities. Nevertheless, high energy prices have compounded the pressure Kars-Akhalkalaki Railroad are part of a strategy to capitalize on the country's inefficient energy sector. Restructuring the sector Georgia's strategic location between Europe and finding energy supply alternatives to Russia remain major challenges. Asia and develop its role as a transit point for gas, oil and other goods.

Georgia's economy has sustained robust GDP growth of close to 10% in 2006 and 12% in 2007, based on strong inflows of foreign investment and robust government spending. However, a widening trade deficit and higher inflation are emerging risks to the economy. Areas of recent improvement include increasing foreign direct investment as well as growth slowed to less than 3% in the construction, banking services 2008 and mining sectors. is expected to slow further in 2009. 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. Despite the severe damage the economy suffered due to civil strife in the 1990s, Georgia, with Georgia has overcome the help chronic energy shortages of the IMF and World Bank, has made substantial economic gains since 2000, achieving positive GDP growth past by renovating hydropower plants and curtailing inflation. Georgia's GDP growth neared 10% by bringing in 2006 and 2007 despite restrictions on commerce with Russia. Areas of recent improvement include newly available supplies from Azerbaijan. It also has an increased foreign direct investment as well as growth in ability to pay for more expensive gas imports from Russia. The construction on the construction, banking services, and mining sectors. In addition, Baku-T'bilisi-Ceyhan oil pipeline, the reinvigorated privatization process has met with success. However, a widening trade deficit Baku-T'bilisi-Erzerum gas pipeline, and higher inflation the Kars-Akhalkalaki Railroad are emerging risks part of a strategy to the economy. 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 new government is making has made great progress and has reformed the tax code, improved tax administration, increased tax enforcement, and cracked down on corruption. corruption since coming to power in 2004. Government revenues have increased nearly four fold since 2003. Due to improvements in customs and financial (tax) tax enforcement, smuggling is a declining problem. Georgia has overcome the chronic energy shortages of the past by renovating hydropower plants and by bringing newly available natural gas supplies from Azerbaijan. It also has an increased ability to pay for more expensive gas imports from Russia. The country is pinning its hopes for long-term growth on a determined effort to reduce regulation, taxes taxes, and corruption in order to attract foreign investment. The construction on the Baku-T'bilisi-Ceyhan oil pipeline, the Baku-T'bilisi-Erzerum gas pipeline, and investment, but 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 economy faces a transit point for gas, oil more difficult investment climate both domestically and other goods. internationally.

Georgia's economy sustained GDP growth of close to more than 10% in 2006 and 12% in 2007, 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed to less than 3% in 2008 following the August 2008 conflict with Russia, and is expected to slow further turned negative in 2009. 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 bringing in newly available supplies from Azerbaijan. It also has an increased ability to pay for more expensive 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 has made great progress and government, since coming to power in 2004, has reformed simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on corruption since coming to power in 2004. Government revenues have increased nearly four fold since 2003. Due petty corruption. However, the economic downturn of 2008-09 eroded the tax base and led to improvements a decline in customs the budget surplus and tax enforcement, smuggling is a declining problem. an increase in public borrowing needs. The country is pinning its hopes for long-term renewed growth on a determined effort to reduce 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.

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 manganese, copper, and copper; gold; 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 capacity that now provides most of its energy supplies. 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. The construction on Construction of 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 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 percent in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-12, with growth rates above 6% per year, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high at above 16%. 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 corruption, leading to a decline in the budget surplus and an increase in public borrowing needs. higher revenues. 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 with a focus on hydropower, agriculture, tourism, and textiles production. Since 2004, the economy faces government has taken a more difficult investment climate both domestically series of actions against endemic corruption, including reform of the traffic police and internationally. implementation of a fair examination system for entering the university system. The government has received high marks from the World Bank for its anti-corruption efforts.

Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. The country imports nearly all 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 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'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 percent in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-12, with growth rates above 6% per year, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high at above 16%. 15%. 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, leading to higher revenues. 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, with a focus on hydropower, agriculture, tourism, and textiles production. Since 2004, the government has taken a series of actions against endemic corruption, including reform of the traffic police and implementation of a fair examination system for entering the university system. The government has received high marks from the World Bank for its anti-corruption efforts.

Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese, copper, and gold; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, and chemicals. chemicals in small-scale industries. The country imports nearly all 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 Baku-T'bilisi-Erzerum 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 point for gas, oil, and other goods. The expansion of the South Caucasus pipeline, as part of the Shah Deniz II Southern Gas Corridor project, will result in a $2 billion foreign investment in Georgia, the largest ever in the country. Gas from Shah Deniz II is expected to begin flowing in 2019. 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 percent 4% in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis. The economy rebounded in 2010-12, with growth rates above 6% per year, 2010-13, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high at above 15%. high. Georgia has historically suffered from a chronic failure to collect tax revenues; however, the government, since coming to power in 2004, 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. 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, with a focus on hydropower, agriculture, tourism, and textiles production. Since 2004, the government has taken a series of actions against endemic corruption, including reform of the traffic police and implementation of a fair examination system for entering the university system. The government has received high marks from the World Bank for its anti-corruption efforts. Over the past year the Georgian Dream-led government 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. The government is finalizing its 2020 Economic Development Strategy and has launched the Georgia Co-Investment Fund, a $6 billion private equity fund that will invest in tourism, agriculture, logistics, energy, infrastructure, and manufacturing.

Georgia'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 point for gas, oil, and other goods. The expansion of the South Caucasus pipeline, as part of the Shah Deniz II Southern Gas Corridor project, will result in a $2 billion foreign investment in Georgia, the largest ever in the country. Gas from Shah Deniz II is expected to begin flowing in 2019. 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 2010-13, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. 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, with a focus on hydropower, agriculture, tourism, and textiles production. The government has received high marks from the World Bank for its anti-corruption efforts. Over the past year 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. The government is finalizing published its 2020 Economic Development Strategy in early 2014 and has former Prime Minister Bidzina IVANISHVILI launched the Georgia Georgian Co-Investment Fund, a $6 billion private equity fund that will invest in tourism, agriculture, logistics, energy, infrastructure, and manufacturing. In mid-2014, Georgia signed an association agreement with the European Union, paving the way to free trade and visa-free travel.

Georgia'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 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. The expansion of the South Caucasus pipeline, as part of the Shah Deniz II Southern Gas Corridor project, will result in a $2 billion foreign investment in Georgia, the largest ever in the country. Gas from Shah Deniz II is expected to begin flowing in 2019.
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 2010-13, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained high. Georgia has historically suffered from a chronic failure to collect tax revenues; however, since 2004 the government has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues.
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, 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, improved tax administration, increased tax enforcement, and cracked down on petty corruption, leading to higher revenues. The government has received high marks from the World Bank for its anti-corruption efforts. 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. The government published its 2020 Economic Development Strategy in early 2014 and former Prime Minister Bidzina IVANISHVILI launched the Georgian Co-Investment Fund, a $6 billion private equity fund that will invest in tourism, agriculture, logistics, energy, infrastructure, and manufacturing. In mid-2014, Georgia signed an association agreement with the European Union, EU, paving the way to free trade and visa-free travel.

Georgia'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 point hub for gas, oil, and other goods. The expansion of the South Caucasus pipeline, as part of the Shah Deniz II Southern Gas Corridor project, will result in a $2 billion foreign investment in Georgia, the largest ever in the country. Gas from Shah Deniz II is expected to begin flowing in 2019.
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 2010-13, the period 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 determined continued effort to continue 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, improved tax administration, 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 its anti-corruption efforts. 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. The government published its 2020 Economic Development Strategy in early 2014 and former Prime Minister Bidzina IVANISHVILI launched the Georgian Co-Investment Fund, a $6 billion private equity fund that will invest in tourism, agriculture, logistics, energy, infrastructure, and manufacturing. 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.

Georgia'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 electricity 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 Baku-Tbilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, and the Kars-Akhalkalaki Baku-Tbilisi-Kars 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 investment, remittances, and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia, and sunk sank 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 the period 2010-16, 2010-17, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment has also remained remains persistently high.
The country is pinning its hopes for renewed faster growth on a continued effort to liberalize the economy by reducing regulation, taxes, build up infrastructure, enhance support for entrepreneurship, simplify regulations, and corruption improve professional education, in order to attract foreign investment, investment and boost employment, with a focus on hydropower, agriculture, transportation projects, tourism, hydropower, and textiles production. agriculture. Georgia has had 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, spending and amending the labor code to comply with International Labor Standards. In mid-2014, Georgia signed concluded an association agreement with the EU, paving the way to free trade and visa-free travel. In 2017, Georgia signed Free Trade Agreement (FTA) with China as part of Tbilisi’s efforts to diversify its economic ties. Georgia is also seeking to expand trade with China, concluding substantive negotiations on a trade agreement in October 2016. develop its Black Sea ports to further facilitate East-West trade.

Georgia'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 electricity 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-Tbilisi-Ceyhan oil pipeline, the South Caucasus gas pipeline, and the Baku-Tbilisi-Kars 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, remittances, and robust government spending. However, GDP growth slowed following the August 2008 conflict with Russia, and sank 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 the period 2010-17, but FDI inflows, the engine of Georgian economic growth prior to the 2008 conflict, have not recovered fully. Unemployment remains persistently high.
The country is pinning its hopes for faster growth on a continued effort to build up infrastructure, enhance support for entrepreneurship, simplify regulations, and improve professional education, in order to attract foreign investment and boost employment, with a focus on transportation projects, tourism, hydropower, and agriculture. Georgia had 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. 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 and amending the labor code to comply with International Labor Standards. In mid-2014, Georgia concluded an association agreement with the EU, paving the way to free trade and visa-free travel. In 2017, Georgia signed Free Trade Agreement (FTA) with China as part of Tbilisi’s efforts to diversify its economic ties. Georgia is seeking to develop its Black Sea ports to further facilitate East-West trade.

COVID-19 crippled tourism, transportation, main economic activities include cultivation of agricultural products, such as grapes, citrus fruits, and construction sectors; rising unemployment, public debts hazelnuts; mining of manganese, copper, and poverty; foreign investment gold; producing alcoholic and domestic bond issuance nonalcoholic beverages