Georgia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Georgia - In Short.

Overview of Georgia

The region of present day Georgia contained the ancient kingdoms of Colchis and Kartli-Iberia. The area came under Roman influence in the first centuries A.D., and Christianity became the state religion in the 330s. Domination by Persians, Arabs, and Turks was followed by a Georgian golden age (11th-13th centuries) that was cut short by the Mongol invasion of 1236. Subsequently, the Ottoman and Persian empires competed for influence in the region. Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918-1921) following the Russian revolution, it was forcibly incorporated into the USSR in 1921 and regained its independence when the Soviet Union dissolved in 1991. Mounting public discontent over rampant corruption and ineffective government services, followed by an attempt by the incumbent Georgian Government to manipulate parliamentary elections in November 2003, touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995. In the aftermath of that popular movement, which became known as the “Rose Revolution,” new elections in early 2004 swept Mikheil SAAKASHVILI into power along with his United National Movement (UNM) party. SAAKASHVILI made progress on market reforms and good governance during his time in power, but also faced accusations of abuse of office. Progress was also complicated by Russian assistance and support to the separatist regions of Abkhazia and South Ossetia that led to periodic flare-ups in tension and violence and that  culminated in a five-day conflict in August 2008 between Russia and Georgia, including the invasion of large portions of Georgian territory. Russian troops pledged to pull back from most occupied Georgian territory, but in late August 2008 Russia unilaterally recognized the independence of Abkhazia and South Ossetia, and Russian military forces remain in those regions. Billionaire Bidzina IVANISHVILI’s unexpected entry into politics in October 2011 brought the divided opposition together under his Georgian Dream coalition, which won a majority of seats in the October 2012 parliamentary elections and removed UNM from power. Conceding defeat, SAAKASHVILI named IVANISHVILI as prime minister and allowed Georgian Dream to create a new government. Giorgi MARGVELASHVILI became president in November 2013, ending a tense year of power-sharing between SAAKASHVILI and IVANISHVILI and SAAKASHVILI then left the country. At the time, these changes in leadership represented unique examples of a former Soviet state that emerged to conduct democratic and peaceful government transitions of power. IVANISHVILI voluntarily resigned from office after the presidential succession, and in the following years, the prime minister position has seen frequent turn over. Most recently, Irakli GARIBASHVILI became prime minister in February 2021, replacing Giorgi GAKHARIA, who later in the year formed his own opposition party. In October 2021, SAAKASHVILI returned to Georgia, where he was immediately arrested to serve six years in prison on outstanding abuse of office convictions. Popular and government support for integration with the West is high in Georgia. Joining the EU and NATO are among the country’s top foreign policy goals.
Value
Country Full Name
Georgia
Country Code
GEO
Region
Europe & Central Asia
Income Group
Upper middle income
Currency Unit
GDP
15846489611
Population
3722716
Land Area
69490
Net National Income Per Capita
3401.805193
GDP per Capita (PPP)
14732.40216

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Georgia - Economic

Economy of Georgia

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.

Unemployment Rate

Inflation Rate

Georgia - GDP Composition

GDP Composiiton & Value Added of Georgia

Last Updated: Jan, 2021, Updated For 2020.

Georgia - GDP, Value Added

Demographics of Georgia

settlement concentrated in the central valley, particularly in the capital city of Tbilisi in the east; smaller urban agglomerations dot the Black Sea coast, with Bat’umi being the largest
Geographic Location

Southwestern Asia, bordering the Black Sea, between Turkey and Russia, with a sliver of land north of the Caucasus extending into Europe; note - Georgia views itself as part of Europe; geopolitically, it can be classified as falling within Europe, the Middle East, or both

Races

Georgian 86.8%, Azeri 6.3%, Armenian 4.5%, other 2.3% (includes Russian, Ossetian, Yazidi, Ukrainian, Kist, Greek) (2014 est.)

Languages

Georgian (official) 87.6%, Azeri 6.2%, Armenian 3.9%, Russian 1.2%, other 1%; note - Abkhaz is the official language in Abkhazia (2014 est.)major-language

Religion

Orthodox (official) 83.4%, Muslim 10.7%, Armenian Apostolic 2.9%, other 1.2% (includes Catholic, Jehovah's Witness, Yazidi, Protestant, Jewish), none 0.5%, unspecified/no answer 1.2% (2014 est.)

Dependency & Expectancy of Georgia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Georgia - Social Media Briefing

Georgia - Social Media & Social Commerce

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Politics & Policies of Georgia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, BSEC, CD, CE, CPLP (associate), EAPC, EBRD, FAO, G-11, GCTU, GUAM, IAEA, IBRD, ICAO, ICC (national committees), ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC (NGOs), MIGA, OAS (observer), OIF (observer), OPCW, OSCE, PFP, SELEC (observer), UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO

Import of Georgia

Export of Georgia

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