Gross domestic product (GDP)

Gross domestic product of Georgia at the end of Q3 2010 was GEL 14.73 billion.

(Source: Statistics Department)

Georgia’s GDP has seen positive growth since the first quarter of 2010, rebounding from the continual downfall since quarter two of 2008.

Gross domestic product (GDP) per capita

In the third quarter of 2010, GDP per capita at current prices was GEL 3,320.9.

(Source: Statistics Department)

Gross national income (GNI)

In the third quarter of 2010, the Gross National Income (GNI) of the country was GEL 14,525.9 million, compared to GNI of GEL 12,732.6 million at the end of the corresponding quarter of 2009.

(Source: Statistics Department)

Georgia’s GNI per capita, at PPP, in 2010 was USD 4,902.

(Source: UNDP)

GNI per capita of the nation in Q3 2010 was GEL 3,274.3.

(Source: Statistics Department)

Tax rates

Individual income tax

The standard income tax rate on individual income for 2011 is 20%, and is projected to remain unchanged for 2012.  However, tax rates are estimated to decrease to 18% in 2013, and further to 15% in 2014.

Corporate tax

The corporate income tax rate prevailing is 15%.

Value added tax (VAT)

Standard VAT in Georgia is 18%.

Property tax

Property tax rate on corporatations and individuals is up to 1%.

(Source:  Ministry of Finance)

Inflation

Inflation rate in the country for January 2011 was registered at 12.3, increasing 2.1% from December 2010. Overall, in 2010, the annual inflation rate of Georgia was 11.2%, compared to 3% in 2009.

(Source: Statistics Department)

Foreign Direct Investment (FDI) inflow

Foreign direct investment in Georgia in 2010 totaled USD 553.05 million, compared to USD 658.4 million in 2009.

(Source: Statistics Department)

In 2010, the Netherlands, the United States, Russia, Japan, Azerbaijan, Turkey, the United Arab Emirates and the Czech Republic invested in Georgia.

(Source: Statistics Department)

(Source: Statistics Department)

Portfolio investment

The portfolio investment of Georgia till Q3 2010 was USD 262.6 million.

(Source: National Bank)

Central bank assets (CBA)

(Source: National Bank)

Non-Performing loan ratio

Non-performing loans in 2010 amounted to GEL 784.28 million.

(Source: National Bank)

Consumer price index

Consumer Price Index (CPI) in January 2011 was registered at 205. While, at the end of 2010, it was 200.9, demonstrating the country’s CPI steady increase, which, in turn, reflects the increase in the prices of consumer goods.

Base, Year 2000 = 100
(Source: National Bank)

Producer price index

Base, Year 2000 = 100

(Source: National Bank)

Interest rates

In 2010, the interest rate on short term deposits in commercial banks was 8.2%, while interest rates on long term deposits was 11.2%.

(Source: National Bank)

Money supply

Currency in circulation in December 2010 was GEL 1,618.18 million, with a reserve of GEL 2,081.13 million.

Monetary aggregates - M1, M2, M3 in December 2010 was GEL 2,326 million, GEL 2,739 million and GEL 6,276 million respectively.

(Source: National Bank)

 M1 - Narrow money, M2 - Broad money, excluding foreign currency denominated deposits, and M3 - Broad money.

(Source: National Bank)

Public debt levels

Total external public debt in December 2010 was GEL 6,979.3 million. Total external debt of various multilateral organisations, such as the IMF, the EBRD, and the ADB amounted to GEL 5,053.54 million.

(Source: Ministry of Finance)

Official exchange rate

The official exchange rate of the Georgian Lari per US dollars in 2010 was 1.77, increasing from the 2009 rate of GEL 1.68 per US dollar.

(Source: National Bank)

Government finances

Fiscal balance

The government's fiscal balance at the end of Q3 2010 was a surplus of GEL 304.8 million. This demonstrates the rebound after 2009, when the government registered its only fiscal deficit since 2002 of GEL 132.5 million.

(Source: Statistics Department)

Total revenue

The total revenue of the Georgian government for 2010 (till Q3) was registered at GEL 4,235.4 million. 

(Source: Statistics Department)

Tax revenue

Total tax revenue collected by the end of the third quarter of 2010 was GEL 3,587.1 million.

(Source: Statistics Department)

Total grants

Total grants to Georgia in 2010 (till Q3) was GEL 284.4 million.

(Source: Statistics Department)

Current account balance (CAB)

Georgia has recorded current account deficits in the last five fiscal years. The country’s current account balance (Q3 2010) was a deficit of USD 739.34 million.

(Source: National Bank)

Balance of payments

(Source: National Bank)

In 2009, labour force in Georgia increased by about 4% and was registered at 1.99 million.

(Source: Statistics Department, Statistics Department)

(Source: Statistics Department)

Total labour force participation rate in the country for 2009 was 63.6%. Specifically, for males and females the rate was recorded at 74.6% and 54.3% respectively.

(Source: Statistics Department)

The total number of employed people during 2009 was 1.65 million, making an employment rate of 52.9%. Of the total employed people, 877,600 were males and 778,600 were females. Specifically, the employment rate was higher in rural areas (65.1%)

(Source: Statistics Department)

Unemployment rate

In 2009, the unemployment rate was 16.9%, and was higher amongst males at 18.1%. The rate was also higher in urban areas with 28.8%, compared to rural areas, where the rate was 7.8%.

The total number of unemployed people in Georgia during 2009 was 335,600, compared to the  previous year’s 315,800 people.

(Source: Statistics Department)

(Source: Statistics Department)

The unemployment rate has constantly increased, specifically it was recorded at 16.5% and 16.9% in 2008 and 2009 respectively.

Minimum wage

The minimum wage prevailing in the country is GEL 20 per month.

(Source: erieri.co.uk)

The average monthly nominal salary in Georgia in 2009 was GEL 556.8.

(Source: Statistics Department)

Level of unionisation

The country’s constitution and law empowers employees the right to join and form trade unions. The government safeguards the rights of employees.

The Amalgamated Trade Unions of Georgia (ATUG) is the main trade union with 31 sectoral unions, and around 600,000 members. ATUG works closely with the International Confederation of Free Trade Unions (ICFTU).

Other trade unions in the country include –

• The Free Trade Union of Teachers of Georgia "Solidarity" (FTUTGS)
• The Independent Trade Union of Metropolitan Employees

(Source: erieri.co.uk)

Georgia operates under a Presidential Republic form of government. Thus, the president is the head of the state and is elected for a five year term. 

The Prime minister heads all ministries, apart from internal affairs and defence, which are headed by the president.

The Georgian Parliament is the apex representative body, and supreme council of the nation. It exercises legislative power and establishes the principle guidelines for domestic and foreign policy. Additonally, parliament controls the activities of the government by regulating that they work within the framework of the constitution. The Parliament is unicameral and is comprised of 150 members.

Major political parties of the nation include:

• United National Movement
• National Council-New Rights
• Christian Democratic Movement
• Labor Party
• Republican Party

(Source: Ministry of Foreign Affairs, Parliament.ge, Georgia.ge)

Regulatory environment in Georgia

Government in Georgia is based on a republic framework, which means that the head of the state is the representative of the people, chosen by the people and is bound to govern by the constitutional law.

(Source:Heritage.org)

The country’s economic freedom score is 70.4, making its economy the 29^th freest in the 2011 Index of Economic Freedom. Georgia ranks 15^th out of the 43 regional countries in the Europe.

Corruption perception

The Corruption Perceptions Index (CPI) is a survey to measure the perceived level of corruption across countries worldwide. Georgia is ranked 68^th on this list, which indicates that the corruption levels in public departments in the country is fairly high.

Georgia has slipped on the CPI rankings since 2009, when it was ranked 66^th with a score of 4.1.

(Source:transparency.org)

Freedom of information

The constitution provides citizens with freedom of speech. But according to the US-based Freedom House, media in Georgia is highly politicised, with the major national television channels supported by the government.

(Source: BBC)

Georgia is ranked 99^th in the world Press Freedom Index 2010 with a score of 27.00, indicating that media in the country is restricted.

(Source: rsf.org)

Newspapers

Major newspapers in the country include:

• Sakartvelos Respublika (Republic of Georgia)
• Rezonansi (Resonance)
• Akhali Versia (New Version)
• Kvilis Palitra
• The Georgian Times
• Georgia Today
• The Messenger
• Svobodnaya Gruzia (Free Georgia)

(Source: BBC)

Judicial system

Judicial power in the country is exercised through the constitution and the courts established by law.
Hence, justice is administered through the common courts with civil, administrative and criminal procedures. The different common courts of Georgia are district (city) court, court of appeals and Supreme Court of Georgia.

The Supreme Court of Georgia is the final instance and administerator of justice throughout the country, aso providing direction over the administration of justice at common courts.

The court of appeals reviews the decisions of district (city) courts through a panel of three judges under the rules recognised by the law.

The Constitutional Court is the final legitimate power in the country. According to the Georgian Constitution, the constitutional court of the country safeguards the rights and freedom of the citizens. This court is comprised of nine judges - the members of the Constitutional Court. Decisions made by the Constitutional Court are final and not subject to appeal or review.

(Source: Georgia Government)

The total population of Georgia in 2010 was 4.44 million, increasing 1.16% from the previous year's 4.38 million.

(Source: Statistics Department)

In 2010, of the total population of 4.43 million, 2.11 million were males and 2.33 million were females. Hence, the gender ratio in the country is imbalanced.  There are about 88.8 males for every 100 females in the country.

(Source: Statistics Department, UN)

(Source: Statistics Department)

Birth rate and mortality rate

The birth rate during 2009 was 14.4 per thousand, and has increased gradually since 2005, when the rate was 10.7 per thousand.

(Source: Statistics Department)

The mortality rate in the same year was 10.6 per thousand, rising from 9.8 deaths per thousand in 2008.

Specifically, the infant mortality rate in 2009 was 14.9 per thousand, decreasing from 2008, when the rate was 17 deaths per thousand.

(Source: Statistics Department)

Life expectancy

Average life expectancy in 2009 was 73.57 years. And specifically, for males and females, in the same year, the expectancy was 69.2 years and 77.69 years respectively.

(Source: Statistics Department)

Ethnic environment

Ethnic groups in Georgia are:

• Georgian 83.8%
• Azeri 6.5%
• Armenian 5.7%
• Russian 1.5%
• other 2.5%

(Source: Ministry of Foreign Affairs)

The majority of the population in the country follows orthodox Christianity (83.9%).  However, the country also has Muslims (9.9%), Armenian – Gregorian (3.9%), Catholics (0.8%) and others (0.8%).

(Source: Ministry of Foreign Affairs)

Migration rate

Net migration in Georgia in 2009 was 34,200 people, increasing quite drastically from 2008 when it was 10,200 people.

(Source: Statistics Department)

International migrant stock, till mid 2010, was recorded at 167,300 people, or approximately 4% of the entire population.

(Source: UN)

Rural/urban population ratio

Of the total population in 2010, about 53%, 2.35 million people, reside in urban areas.  While the rural population is about 47%, or 2.08 million.

(Source: Statistics Department)

The latest figures reveal that urban population in the country has declined at an annual rate of 0.6% between 2005 and 2010.  Alternatively, in the same time span, the rural population declined at a rate of 1% per year.

(Source: UN)

Human development index (HDI)

Georgia ranks 74^th out of 169 countries on the Human Development Index 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a decent standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

Education

The literacy rate in Georgia is estimated at 100%.

In 2008-09, the total number of general education schools in the country was 2,448, of which 2,178 were public schools, and 270 were private schools. Total number of higher education institutions in the country in 2009-10 was 108, of which the maximum number (75) of institutions was located in the national capital Tbilisi.

According to data from the United Nations’ Human Development Indicators (HDI), expenditure on education is estimated to make up 2.9% of the GDP.

(Source: Statistics Department, Statistics Department, UNDP)

Health care

Major causes of death in the country include diseases of the circulatory system, malignant neoplasm and external causes like injuries and poisoning.

(Source: World Health Organisation)

In 2009, morbidity in the country was due mostly to respiratory system diseases and diseases of digestive organs.

(Source: Statistics Department)

The total number of hospitals in 2009 was 241, with a total of 13,600 hospital beds.

(Source: Statistics Department)

Total health expenditure in 2007 was registered at USD 830 million, of which public health expenditure accounted for USD 152.9 million and private sector expenditure was USD 600.7 million.

(Source: World Health Organisation)

Roadways

Total length of roadways in the country is 20,329 km, of which 7,854 km are paved and 12,475 km are unpaved.

(Source: Georgia.ge)

Railways

Total length of railways in Georgia is 1,612 km, all of which are electrified. Of the total railway line, 1,575 km are broad gauge and 37 km are narrow gauge.

(Source: Ministry of Foreign Affairs)

Ports

There are four ports in Georgia: Port of Batumi, Supsa Terminal, Port of Poti and Port of Sukhumi.

(Source:world port source)

Airports

There are about 30 airports in the country. The country’s major airport, Lochini, is based in national capital, Tbilisi, and its runway length is 9,800 feet.

(Source: Ministry of Foreign Affairs, Air charter world)

Telecommunications networks

In 2010, 1.3 million people, or 28.3% of the total population, used internet services.

(Source:internetworldstats.com)