Georgia (2007) | Georgia (2008) | |
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Background | 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 until the Soviet Union dissolved in 1991. An attempt by the incumbent Georgian government to manipulate national legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995. New elections in early 2004 swept Mikheil SAAKASHVILI into power along with his National Movement party. Progress on market reforms and democratization has been made in the years since independence, but this progress has been complicated by two civil conflicts in the breakaway regions of Abkhazia and South Ossetia. These two territories remain outside the control of the central government and are ruled by de facto, unrecognized governments, supported by Russia. Russian-led peacekeeping operations continue in both regions. The Georgian Government put forward a new peace initiative for the peaceful resolution of the status of South Ossetia in 2005. | 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 until the Soviet Union dissolved in 1991. An attempt by the incumbent Georgian government to manipulate national legislative elections in November 2003 touched off widespread protests that led to the resignation of Eduard SHEVARDNADZE, president since 1995. New elections in early 2004 swept Mikheil SAAKASHVILI into power along with his National Movement party. Progress on market reforms and democratization has been made in the years since independence, but this progress has been complicated by two ethnic conflicts in the breakaway regions of Abkhazia and South Ossetia. These two territories remain outside the control of the central government and are ruled by de facto, unrecognized governments, supported by Russia. Russian-led peacekeeping operations continue in both regions. |
Budget | revenues: $2.331 billion
expenditures: $2.507 billion (2006 est.) |
revenues: $3.68 billion
expenditures: $3.006 billion (2007 est.) |
Debt - external | $2.04 billion (2004) | $4.5 billion (2007) |
Diplomatic representation in the US | chief of mission: Ambassador Vasil SIKHARULIDZE
chancery: 1101 15th Street NW, Suite 602, Washington, DC 20005 telephone: [1] (202) 387-2390 FAX: [1] (202) 393-4537 |
chief of mission: Ambassador Vasil SIKHARULIDZE
chancery: 2209 Massachusetts Avenue NW, Washington, DC 20008 telephone: [1] (202) 387-2390 FAX: [1] (202) 393-4537 |
Economy - overview | 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 remains a drain on the economy. Georgia also suffers from 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 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 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 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 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 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. Government revenues have increased nearly four fold since 2003. Due to improvements in customs and financial (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 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 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. |
Electricity - consumption | 7.354 billion kWh (2005) | 8.146 billion kWh (2007) |
Electricity - exports | 122 million kWh (2005) | 625 million kWh (2007) |
Electricity - imports | 1.468 billion kWh (2005) | 433 million kWh (2007) |
Electricity - production | 7.142 billion kWh (2005) | 8.338 billion kWh (2007) |
Exchange rates | lari per US dollar - 1.78 (2006), 1.8127 (2005), 1.9167 (2004), 2.1457 (2003), 2.1957 (2002) | lari per US dollar - 1.7 (2007), 1.78 (2006), 1.8127 (2005), 1.9167 (2004), 2.1457 (2003) |
Executive branch | chief of state: Acting President Nino BURJANADZE (since 25 November 2007); note - Mikheil SAAKASHVILI, who had been president since 25 January 2004, resigned the presidency on 25 November 2007 in order to become a candidate in early presidential elections to be held 5 January 2008; the president is both the chief of state and head of government for the power ministries: state security (includes interior) and defense
head of government: Acting President Nino BURJANADZE (since 25 November 2007); Prime Minister Lado GURGENIDZE (since 19 November 2007); note - Mikheil SAAKASHVILI, who had been president since 25 January 2004, resigned the presidency on 25 November 2007 in order to become a candidate in early presidential elections to be held 5 January 2008; the president is both the chief of state and head of government for the power ministries: state security (includes interior) and defense cabinet: Cabinet of Ministers elections: president elected by popular vote for a five-year term (eligible for a second term); election last held 4 January 2004 (next to be held 5 January 2008) election results: Mikheil SAAKASHVILI elected president; percent of vote - Mikheil SAAKASHVILI 96.3%, Temur SHASHIASHVILI 1.9% |
chief of state: President Mikheil SAAKASHVILI (since 25 January 2004); the president is both the chief of state and head of government for the power ministries: state security (includes interior) and defense
head of government: President Mikheil SAAKASHVILI (since 25 January 2004); Prime Minister Lado GURGENIDZE (since 19 November 2007); the president is both the chief of state and head of government for the power ministries: state security (includes interior) and defense; the prime minister is head of the remaining ministries of government cabinet: Cabinet of Ministers elections: president elected by popular vote for a five-year term (eligible for a second term); election last held 5 January 2008 (next to be held January 2013) election results: Mikheil SAAKASHVILI reelected president; percent of vote - Mikheil SAAKASHVILI 53.5%, Levan GACHECHILADZE 25.7%, Badri PATARKATSISHVILI 7.1% |
Exports | NA bbl/day | 2,400 bbl/day (2004) |
Exports - commodities | scrap metal, machinery, chemicals; fuel reexports; citrus fruits, tea, wine | scrap metal, wine, mineral water, ores, vehicles, fruits and nuts |
GDP - composition by sector | agriculture: 15%
industry: 28.3% services: 56.7% (2006 est.) |
agriculture: 12.3%
industry: 29.7% services: 58% (2007 est.) |
GDP - real growth rate | 9.4% (2006 est.) | 12% (2007 est.) |
Household income or consumption by percentage share | lowest 10%: 2%
highest 10%: 30.3% (2003) |
lowest 10%: 2.4%
highest 10%: 27% (2005) |
Imports | NA bbl/day | 13,530 bbl/day (2004) |
Imports - commodities | fuels, machinery and parts, transport equipment, grain and other foods, pharmaceuticals | fuels, vehicles, machinery and parts, grain and other foods, pharmaceuticals |
Industrial production growth rate | 3% (2000) | 12% (2007 est.) |
Inflation rate (consumer prices) | 9.2% (2006 est.) | 11% (2007 est.) |
International organization participation | ACCT (observer), BSEC, CE, CIS, EAPC, EBRD, FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC, MIGA, OAS (observer), OIF (observer), OPCW, OSCE, PFP, SECI (observer), UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO | ACCT (observer), ADB, BSEC, CE, CIS, EAPC, EBRD, FAO, GCTU, GUAM, IAEA, IBRD, ICAO, ICC, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITSO, ITU, ITUC, MIGA, OAS (observer), OIF (observer), OPCW, OSCE, PFP, SECI (observer), UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WHO, WIPO, WMO, WTO |
Labor force | 2.04 million (2004 est.) | 2.02 million (2007 est.) |
Labor force - by occupation | agriculture: 40%
industry: 20% services: 40% (1999 est.) |
agriculture: 55.6%
industry: 8.9% services: 35.5% (2006 est.) |
Legislative branch | unicameral Supreme Council (commonly referred to as Parliament) or Umaghlesi Sabcho (235 seats; 150 members elected by proportional representation, 75 from single-seat constituencies, and 10 represent displaced persons from Abkhazia; to serve five-year terms)
elections: last held 28 March 2004 (next to be held in spring 2008) election results: percent of vote by party - National Movement-Democratic Front 67.6%, Rightist Opposition 7.6%, other parties 24.8%; seats by party - National Movement-Democratic Front 135, Rightist Opposition 15 |
unicameral Parliament or Parlamenti (also known as Supreme Council or Umaghlesi Sabcho) (235 seats; 150 members elected by proportional representation, 75 from single-seat constituencies, and 10 represent displaced persons from Abkhazia; to serve five-year terms)
elections: last held 28 March 2004 (next to be held in spring 2008) election results: percent of vote by party - National Movement-Democratic Front 67.6%, Rightist Opposition 7.6%, other parties 24.8%; seats by party - National Movement-Democratic Front 135, Rightist Opposition 15 |
Pipelines | gas 1,349 km; oil 1,010 km (2006) | gas 1,591 km; oil 1,253 km (2007) |
Population below poverty line | 54.5% (2003) | 31% (2006) |
Telephone system | general assessment: fixed-line telecommunications network has only limited coverage outside Tbilisi; multiple mobile-cellular providers provide services to an increasing subscribership
domestic: local - T'bilisi, K'ut'aisi, and Batumi have cellular telephone networks; urban telephone density is about 20 per 100 people; rural telephone density is about 4 per 100 people; intercity facilities include a fiber-optic line between T'bilisi and K'ut'aisi; nationwide pager service is available international: country code - 995; the Georgia-Russia fiber optic submarine cable provides connectivity to Russia; international service is available by microwave, landline, and satellite through the Moscow switch; international electronic mail and telex service are available |
general assessment: fixed-line telecommunications network has only limited coverage outside Tbilisi; multiple mobile-cellular providers provide services to an increasing subscribership throughout the country
domestic: cellular telephone networks now cover the entire country; urban telephone density is about 20 per 100 people; rural telephone density is about 4 per 100 people; intercity facilities include a fiber-optic line between T'bilisi and K'ut'aisi; nationwide pager service is available international: country code - 995; the Georgia-Russia fiber optic submarine cable provides connectivity to Russia; international service is available by microwave, landline, and satellite through the Moscow switch; international electronic mail and telex service are available |
Telephones - main lines in use | 553,100 (2006) | 544,000 (2007) |
Telephones - mobile cellular | 1.704 million (2006) | 2.4 million (2007) |
Transportation - note | transportation network is in poor condition resulting from ethnic conflict, criminal activities, and fuel shortages; network lacks maintenance and repair | large parts of transportation network are in poor condition because of lack of maintenance and repair |
Unemployment rate | 12.6% (2004 est.) | 13.6% (2006 est.) |