Georgia/Economy

Economy - overview: Georgia's economy has traditionally revolved around Black Sea tourism; cultivation of [citrus fruit]?s, 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 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 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%.

GDP: purchasing power parity - $11.7 billion (1999 est.)

GDP - real growth rate: 3.5% (1999 est.)

GDP - per capita: purchasing power parity - $2,300 (1999 est.)

GDP - composition by sector:
agriculture: 32%
industry: 23%
services: 45% (1999 est.)

Population below poverty line: 60% (1999 est.)

Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%

Inflation rate (consumer prices): 19% (1999 est.)

Labor force: 3.08 million (1997)

Labor force - by occupation: industry and construction 20%, agriculture and forestry 40%, services 40% (1999 est.)

Unemployment rate: 14.5% (1998 est.)

Budget:
revenues: $364 million
expenditures: $568 million, including capital expenditures of $NA (1998)

Industries: steel, aircraft, machine tools, electric locomotives, truck?s, tractor?s, textile?s, shoes, chemicals, wood products, wine

Industrial production growth rate: -0.3% (1998 est.)

Electricity - production: 6.96 billion kWh (1998)

Electricity - production by source:
fossil fuel: 14.66%
hydro: 85.34%
nuclear: 0%
other: 0% (1998)

Electricity - consumption: 6.123 billion kWh (1998)

Electricity - exports: 700 million kWh (1998)

Electricity - imports: 350 million kWh (1998)

Agriculture - products: citrus?, grapes?, tea, vegetables?, potatoes; livestock?

Exports: $330 million (1999 est.)

Exports - commodities: citrus fruits, tea, wine, other agricultural products; diverse types of machinery and metals; chemicals; fuel reexports; textiles

Exports - partners: Russia 27%, Turkey 20%, Azerbaijan 10%, Armenia 8% (1997)

Imports: $840 million (1999 est.)

Imports - commodities: fuel, grain and other foods, machinery and parts, transport equipment

Imports - partners: EU 22%, Russia 15%, Turkey 12%, Azerbaijan 12%, US 7% (1997)

Debt - external: $1.8 billion (1998)

Economic aid - recipient: $212.7 million (1995)

Currency: 1 lari? (GEL) = 100 tetri

Exchange rates: lari per US$1 (end of period) - 1.9503 (December 1999), 2.0245 (1999), 1.3898 (1998), 1.2975 (1997), 1.2628 (1996), 1.24 (December 1995)

Fiscal year: calendar year