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Georgia

 Flag of Georgia

Last reviewed: 7 April 2008

Country information

ECONOMY

Basic Economic Facts

GDP: US$16bn
GDP per head: $1,430
Annual Growth: 7%
Inflation: 6-10%
Exchange Rate: 1 US$ = 1.79 Gel and 1 UK£= 3.10 Gel (March 2007)
Major Industries: Agriculture (wine and water), financial service and construction.
Major Trading Partners: CIS countries, Russia (but see below) and Turkey.

Georgia was hit badly by the Russian financial crisis of August 1998 and it took the country a long time to start recovering. Since 2003 the economy has grown rapidly. Agriculture is the largest sector of economy, accounting for 21% of total GDP, although several other industries have high growth rate, including construction (33%), financial services (20%), communication (19%), hotels and restaurants (17%). The construction of the Baku-Tbilisi-Ceyhan (BTC) oil pipeline has also helped boost the economy.

Traditionally Georgia has exported most of its goods throughout the Former Soviet Union and to Turkey, however the recent deterioration in relationships with Russia (the main market) has seen a halting of the export of most agricultural goods including wine and mineral water on health grounds. This has led to a rapid attempt to diversify markets that has included trade missions to China and throughout the EU.

The IMF and World Bank along with the EU and US are the main donors for Georgia. The IMF programme went off-track in 2003, as the Georgian authorities failed to comply with the requirements set out by the fund. The IMF approved a new three year arrangement under the poverty reduction and growth Facilitation (PRGF) and Georgia will be able to withdraw up to $144 million from the IMF. The World Bank reduced its three-year assistance plan for Georgia in 2003, but is reassessing its country assistance strategy. It is likely to continue to come under the Economic Development and Poverty Reduction Programme (EDPRP) framework designed by Georgia together with international organisations and donors in 2003. This programme is the first such plan for Georgia, setting out the main objectives and identifying priorities for the country until 2015.

Tackling corruption and reforming the Tax codes have been major achievements. Tax revenues continue to rise following a more systematic collection system. As a result Georgia is becoming increasingly interesting to investors. There remain some concerns over the arbitration process, but this is being addressed as part of an overall judicial reform programme.

The Paris Club creditors agreed on 21 July 2004 to a restructuring of Georgia's external debt.

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Contacts

Georgia, Tbilisi, British Embassy

Address:

British Embassy
GMT Plaza
4 Freedom Square
Tbilisi, 0105

Telephone:

+ 995 32 274747 (Main Embassy Switchboard)
+ 995 32 274775 (Visa/Consular Enquiries)

Fax:

+ 995 32 274792 (Main Embassy)
+ 995 32 274779 (Visa/Consular Section)

Office hours:

GMT:
Mon-Fri: 0500-0900 1000-1300

Local Time:
Mon-Fri: 0900-1300 1400-1700

Daylight saving: Georgia does not change its clocks.

Website: http://ukingeorgia.fco.gov.uk/en/

South Georgia and South Sandwich Islands, Governor's Office