Georgia's main economic activities include
the cultivation of agricultural products such as citrus fruits, tea, hazelnuts,
and grapes; 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. 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 since 1995, achieving positive
GDP growth and curtailing inflation. However, the Georgian Government suffers from
limited resources due to a chronic failure to collect tax revenues. Georgia also
suffers from energy shortages; it privatized the Tbilisi distribution network in
1998, but collection rates are low, making the venture unprofitable. The country
is pinning its hopes for long-term growth on its role as a transit state for
pipelines and trade. The start of construction on the Baku-Tbilisi-Ceyhan oil pipeline
and the Baku-Tbilisi-Erzerum gas pipeline will bring much-needed investment and
job opportunities.
Gross Domestic Product (GDP) composition by sector:
agriculture 18.3%, industry 19%, services 62.7% (2002)
Labor force (by occupation): industry 20%,
agriculture 40%, services 40% (1999)
Unemployment rate: 17% (2001)
Industries: steel, aircraft, machine tools, electrical
appliances, mining (manganese and copper), chemicals, wood products, wine
Agriculture - products: citrus, grapes, tea, hazelnuts,
vegetables; livestock
Exports - commodities: scrap metal, machinery, chemicals;
fuel reexports; citrus fruits, tea, wine
Exports - partners: Turkey 21.7%, Italy 11.4%,
Russia 10.7%, Greece 8.1%, Netherlands 7.1%, Spain 5.5%, Turkmenistan 4.5% (2002)
Imports - commodities: fuels, machinery and parts,
transport equipment, grain and other foods, pharmaceuticals
Imports - partners: Azerbaijan 11.7%, Turkey 10.6%,
US 10.4%, Russia 9.5%, Germany 7.4%, Ukraine 6%, Italy 5.3%, Bulgaria 5.1%,
France 4.4% (2002)