Invest in Georgia — Doing Business – 10 Reasons to Invest in Georgia – Stable Macroeconomic Environment

Stable Macroeconomic Environment

Consistent and sustainable macroeconomic policies pursued by the Georgian Government have produced positive results as evidenced by strong economic growth trends.

 

Key Macroeconomic Indicators of Georgia

 2000200120022003200420052006Economic ActivityNominal GDP (GEL mln)6,0436,6747,4568,5649,82411,62113,784Nominal GDP (US$ mln)3,0603,2193,4003,9955,1666,4167,744GPD per Capita (GEL)1,2991,4451,6261,8802,1662,5703,132GPD per Capita (US$)6586977418771,1391,4191,760GDP growth %1.84.85.511.15.99.69.4InflationCPI (year end %)4.63.45.47.07.56.28.8External BalancesTotal Exports (FOB, US$ mln)323318346461647866993Total Imports (CIF, US$ mln)7097537961,1411,8482,4913,678Trade Balance (US$ mln)(387)(436)(450)(680)(1,201)(1,625)(2,685)FDI (US$ mln)1311101673404994501,147FDI as % of GDP 4.33.44.98.59.77.014.8Fiscal Balance and Debt IndicatorsState Budget Revenues (GEL mln)9209061,1561,3442,2823,2574,430State Budget Expenditures (GEL mln)1,1361,0291,4021,5222,4123,2814,464Deficit(216)(123)(245)(178)(130)(24)(34)Government Debt (GEL mln)5,1634,4504,8434,6084,3074,0763,855Exchange RateGEL/US (Average)1.98 2.07 2.19 2.15 1.92 1.81 1.78 Source: Department for Statistics of the Ministry of Economic Development of Georgia

 

 

GDP

Source: Department for Statistics of the Ministry of Economic Development of Georgia

 

In 2006, trade (13.6%), agriculture (11.3%) and manufacturing (8.6%) accounted for the largest shares of GDP. The highest growth rates were registered in the sectors of finance (40.4%), manufacturing (22.4%), trade (19.7%), mining (18.9%) and transport (15.1%).

 

GDP Structure in 2006

 

 GDP
(Mln USD)Total structureGrowth rate
compared to
the previous yearAgriculture, Forestry, Fishing862,511,390,7Mining and quarrying79,31,0118,9Manufacturing654,58,6122,4Electricity, gas and water supply207,32,7114,2Processing products by household193,52,5102,2Construction521,66,8109,9Trade services, Repair services1053,513,6119,7Restaurant and Hotel services170,22,2111,7Transport and storage620,28,0115,1Communications269,43,5111,9Financial intermediation175,32,3140,4Real estate, renting and business activities248,63,2113,1Imputed rent of own occupied dwellings186,92,498,7Public administration and defense665,08,698,9Education276,83,6107,0Health care and social Services336,14,3113,4Other community, social and personal service activities267,04,3112,0Private households with employed persons5,10,1110,2(-) FISIM adjustment-70,9-0,993,7(=)Gross Domestic Product at basic prices6764,587,4109,5(+) Taxes on products1011,613,1106,8(-) Subsidies on products1011,6-0,489,1(=)Gross domestic product at market prices7743,8100,0109,4Source: Department for Statistics of the Ministry of Economic Development of Georgia

 

Foreign direct investments made in Georgia in 2006 amounted to $1.147 billion USD. As shown on the following chart the amount of foreign direct investments has increased significantly compared to the previous years.

 

 

Foreign Direct Investments

Source: Department for Statistics of the Ministry of Economic Development of Georgia

 

Annual Inflation (end of period)

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