GEORGIA ECONOMY

Georgia economy

Georgia economy

“Georgia's modern economy is as diverse as its population. The rapid industrialization since 1940 has helped Georgia to succeed nationally. Much of Georgia's economy is based on agribusiness. This means that, while most Georgians do not work on farms, many of them work in jobs that depend on farm and forest products.

Georgia's economy is very diverse, however. The state is home to automobile and airplane factories. Georgia is rich in natural resources and ranks first in the number of acres of commercial forest. Livestock and poultry operations produce millions of dollars of income every year. Factories produce textiles, clothing, and electronic and transportation equipment. Georgia's goods are transported by road, by rail, and through the busy port in Savannah. Also, Atlanta's Hartsfield International Airport is one of the busiest in the world.

Unemployment Rate

According to the BLS current population survey (CPS), the unemployment rate for Georgia fell 0.1 percentage points in October 2011 to 10.2%. The state unemployment rate was 1.2 percentage points higher than the national rate for the month. The unemployment rate in Georgia peaked in October 2009 at 10.4% and is now 0.2 percentage points lower. From a post peak low of 9.8% in April 2011, the unemployment rate has now grown by 0.4 percentage points (See Appendix for graphs and Tables).

Inflation Rate

Georgia's inflation rate will fall to 7.5 percent by the end of the year, after consumer-price growth accelerated to 13.9 percent in the first quarter, the central bank said. While inflation may remain at 13 percent to 14 percent in the second quarter, it will slow in the second half as food prices stabilize, the Tbilisi-based bank said today in an e- mailed report. Inflation has exceeded the central bank's 6 percent target for the last 11 months, driven largely by food prices, which comprise more than 40 percent of Georgia's consumer-inflation basket. Consumer prices rose 14.3 percent in May from a year earlier, up from 13.5 percent in this year.

Year

Inflation, average consumer prices

1995

162.718

1996

39.329

1997

6.988

1998

3.552

1999

19.128

2000

4.04

2001

4.688

2002

5.579

2003

4.786

2004

5.666

2005

8.258

2010

9.161

2011

9.246

2008

10.007

2009

1.727

2010

7.109

Economic Growth

USAID's economic growth activities focus on developing institutional and human capacity within government agencies and the private sector. Projects are designed to improve the business environment, expand access to capital, enhance business skills, improve agricultural productivity, increase competitiveness of targeted business sectors, and expand economic opportunities in rural communities. Economic growth initiatives will also rehabilitate large-scale municipal infrastructure, provide durable housing solutions for IDPs, and support and promote conflict mitigation in the breakaway region of Abkhazia through community mobilization, skills-building, and cross-border linkages for youth and professionals.

In 2010, trade relations were plagued by politically motivated interruptions when Russia imposed bans on all Georgian exports of wine, fruits and vegetables, and mineral water. In October 2010, Russia severed all direct transportation links, as well as postal service and visa issuance. In addition, Russia undertook a campaign of deportations of Georgian nationals residing in Russia and closed the only legal land border crossing between Georgia and Russia, diverting traffic into the separatist regions outside of Georgia's ...