Economy - overview 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 1995-97, increasing GDP growth and slashing inflation. Georgia still suffers from energy shortages, although energy 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. A growing trade deficit, continuing problems with corruption, and political uncertainties cloud the short-term economic picture.

GDP purchasing power parity - $8.1 billion (1997 est.)

GDP - real growth rate 11.8% (1997 est.)

GDP - per capita purchasing power parity - $1,570 (1997 est.)

GDP - composition by sector
agriculture: 29%
industry: 16%
services: 55% (1997 est.)

Inflation rate - consumer price index 7.1% (1997 est.)

Labor force
total: 2.2 million (1996)
by occupation: industry and construction 31%, agriculture and forestry 25%, other 44% (1990)

Unemployment rate 16% (1996 est.)

Budget
revenues: $441 million
expenditures: $606 million, including capital expenditures of $54 million (1996 est.)

Industries steel, aircraft, machine tools, foundry equipment, electric locomotives, tower cranes, electric welding equipment, machinery for food preparation and meat packing, electric motors, process control equipment, trucks, tractors, textiles, shoes, chemicals, wood products, wine

Industrial production growth rate 8.1% (1997 est.)

Electricity - capacity 4.558 million kW (1995)

Electricity - production 7.1 billion kWh (1996)

Electricity - consumption per capita 1,175 kWh (1995)

Agriculture - products citrus, grapes, tea, vegetables, potatoes; small livestock sector

Exports
total value: $400 million (f.o.b., 1996 est.)
commodities: citrus fruits, tea, wine, other agricultural products; diverse types of machinery; ferrous and nonferrous metals; textiles; chemicals; fuel re-exports
partners: Russia, Turkey, Armenia, Azerbaijan, Bulgaria (1996)

Imports
total value: $733 million (c.i.f., 1996 est.)
commodities: fuel, grain and other foods, machinery and parts, transport equipment
partners: Russia, Turkey, Azerbaijan (1996); note - EU and US send humanitarian food shipments

Debt - external $1.3 billion (1996 est.)

Economic aid
recipient: ODA, $28 million (1993)
note: commitments, 1992-95, $1,200 million ($675 million disbursements)

Currency lari introduced September 1995 replacing the coupon

Exchange rates lari per US$1 (end of period) - 1.32 (December 1997), 1.28 (December 1996), 1.24 (December 1995)

Fiscal year calendar year

NOTE: The information regarding Georgia on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Georgia Economy 1998 information contained here. All suggestions for corrections of any errors about Georgia Economy 1998 should be addressed to the CIA.