Economy Situation:
Since early 2000s visible positive developments have been observed in the economy of Georgia. In 2007 Georgia's real GDP growth rate reached 12%, making Georgia one of the fastest growing economies in Eastern Europe. The World Bank declared Georgia "the number one economic reformer in the world" because it has in one year improved from rank 112th to 18th in terms of ease of doing business. (World Bank, 2009) However, growth slowed to less than 3% in 2008 and is expected to slow further in 2009. (IMF, 2009)
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. Growth in the construction, banking services, and mining sectors has been witnessed, but reduced availability of external investment and the slowing regional economy are emerging risks. 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. (CIA Factbook, 2009)
IMF 2007 estimates place Georgia's nominal GDP at US$10.3 billion. Georgia's economy is shifting from agriculture, which contributed 10.9% of the GDP, towards the services industry, which represents 65% of GDP. Georgia is becoming more integrated into the global trading network. Its 2006 imports and exports account for 10% and 18% of GDP respectively. Georgia's main imports are natural gas, oil products, machinery and parts, and transport equipment. (CIA Factbook, 2009)
Income and unemployment
As of 2001 54% of the population lived below the national poverty line but by 2006 poverty decreased to 34%. In 2005 average monthly income of a household was GEL 347 (about $200). The country has high unemployment rate of 12.6% and has fairly low median income compared to European countries. In 2005, 27% of the household expenditure was made by the top 10% of the households, while 2.4% by the last 10% (CIA, 2009)
References:
"World | Europe | West condemns Russia over Georgia". BBC News. 2008-08-26. .
CIA Factbook, 2009: Georgia
Department of Economic and Social Affairs Population Division (2009) (.PDF). World Population Prospects, Table A.1. 2008 revision. United Nations.
International Monetary Fund http://www.imf.org/external/pubs/ft/weo/2009/01/weodata/weorept.aspx?sy=2006&ey=2009&scsm=1&ssd=1&sort=country&ds=.&br=1&c=915&s=NGDPD%2CNGDPDPC%2CPPPGDP%2CPPPPC%2CLP&grp=0&a=&pr.x=82&pr.y=10. Retrieved on 2009-04-22
