Georgia Economy 1997

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 resourceis hydropower. Despite the severe damage the economy has suffered due to civilstrife, Georgia, with the help of the IMF and World Bank, has made substantialeconomic gains in 1995-96, pushing GDP growth and slashing inflation. Georgiahad been suffering from acute energy shortages, although energy deliveriesimproved in 1996. Georgia is pinning its hopes for long-term recovery on thedevelopment of an international transportation corridor through the key BlackSea ports of P'ot'i and Bat'umi. The decision in 1996 to construct an earlyCaspian oil pipeline through Georgia underscores the viability of such a corridorand may spur greater western investment in the economy. A growing trade deficitand political uncertainties cloud the short-term economic picture.

GDP purchasing power parity - $7.1 billion (1996 estimate as extrapolatedfrom World Bank estimate for 1994)

GDP - real growth rate 11% (1996 est.)

GDP - per capita purchasing power parity - $1,350 (1996 est.)

GDP - composition by sector
agriculture : 70.4%
industry: 10.2%
services: 19.4% (1993 est.)

Inflation rate - consumer price index 13.3% (1996 est.)

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

Unemployment rate 21% (1996 est.)

Budget
revenues: $NA
expenditures: $NA, including capital expenditures of $NA

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 7.7% (1996 est.)

Electricity - capacity 4.56 million kW (1994)

Electricity - production 7.1 billion kWh (1996)

Electricity - consumption per capita 1,095 kWh (1995 est.)

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

Exports
total value: $356 million (f.o.b., 1995)
commodities: citrus fruits, tea, wine, other agricultural products; diverse typesof machinery; ferrous and nonferrous metals; textiles; chemicals; fuel re-exports
partners : Russia, Turkey, Armenia, Azerbaijan, Bulgaria (1996)

Imports
total value: $647 million (c.i.f., 1995)
commodities: fuel, grain and other foods, machinery and parts, transport equipment
partners: Russia, Turkey, Azerbaijan (1996); note - EU and US send humanitarianfood shipments

Debt - external $1.6 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) - 1.28 (December 1996), 1.24 (December1995)

Fiscal year calendar year

NOTE: The information regarding Georgia on this page is re-published from the 1997 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Georgia Economy 1997 information contained here. All suggestions for corrections of any errors about Georgia Economy 1997 should be addressed to the CIA.