Country Overview

Area

69 700 sq km

Population 2010

4,4 mln

Life expectancy

76 years

Official language

Georgian

Literacy

100%

Capital

Tbilisi

Currency (code) Lari (GEL)
GDP 2010 US$ 11.7 billion
GDP - Real Growth Rate 2010 +6.4%

Projected 2010 Real GDP Growth Rate

+4.9%

GDP  - Per Capita 2010

US$ 2629.0

Inflation rate 2010 (average annual)

11.2%

Unemployment rate

16.3%

Total exports 2010 (Mil. USD)

1583.3

Total imports 2010 (Mil. USD)

5095.5

Trade surplus/deficit 2010 (Mil. USD)

-3512.2

Exchange rate - USD/GEL 2010 (Period average)

1.7826

Exchange rate - EUR/GEL 2010 (Period average)

2.3644

 

GOVERNMENT

 

Georgia is a democratic Presidential-Parliamentary republic, with the President as the Head of State, and Prime Minister as the Head of Government. Since gaining independence from the former Soviet Union, Georgia has opened up its country and its economy to the world for the last 15 years. Today, one of the governments core economic policies involves developing the business climate to facilitate investment, integrating with international markets and attracting foreign investment.

 

By undertaking numerous economic reform initiatives and ensuring a strong legal system to protect investor rights, Georgia has positioned itself as an attractive destination for foreign investment.

 

Reform Successes:

 

ECONOMY

 

As a bridge between Europe and Asia, Georgias economy is highly integrated with international markets. As a Regional Headquarters for international firms, Georgia provides direct access to more than 1 billion consumers.

 

Georgias government has implemented sweeping reforms since 2004 to offer a Liberal Tax System and a Business-Friendly Environment  to potential investors. Georgias pro-business legislation and liberal labor law have contributed to trade liberalization and a significant growth in local production and exports.

 

In 2007, Georgias 4-Year Average GDP growth was 10.5% and Foreign Investment was over USD 2 Billion.

 

This economic growth and increased international investment has created many social benefits, including increased education and employment opportunities, more specialized trades, expanded access to capital and international business standards.

 

Despite recent decreases in economic growth rates due to the global financial crisis, Georgias real GDP growth rate was 6.4% in 2010.

 

TRADE POLICIES

 

In 2010, Georgias total international trade turnover was USD 6.7 Billion, an increase of 199% since 2005. This success can be contributed to Georgias more active role in the global economy and its steady growth in FDI since 2004.

 

To protect investors and to enhance Georgias role as an investment destination, it has established bilateral treaties on investment promotion and protection with 32 countries and has concluded double taxation treaties with 31 countries across the globe.

 

Georgias Customs Code is on par with European standards and has streamlined its Customs procedures to simplify the import and export process. Highlights of the Customs tariffs are:

  • Low import tariffs (90% of goods are free from import tariff)
  • Few export/import licenses and permits
  • No quantitative restrictions on import and export
  • No customs tariff on export and re-export
  • No VAT on export
  • Simplified export and import procedures

 

Competitive Trade Regimes – Highlights

  • Free Trade Regime – with CIS countries and Turkey (since November 1, 2008)
  • Most Favored Nation Regime (MFN) – with World Trade Organization (WTO) member countries
  • Preferential Regime (GSP) – with USA, Canada, Japan, Switzerland, Norway
  • Preferential Regime (GSP+) – with EU (7200 products duty free)
  • Possibility of FTA with EU in nearest future