Georgia (country)

Georgia (Georgian: ?????????? Sakartvelo), known from 1990 to 1995 as the Republic of Georgia, is a country to the east of the Black Sea in the southern Caucasus. A former republic of the Soviet Union, it shares borders with Russia in the north and Turkey, Armenia, and Azerbaijan in the south.

Economy

Main article: Economy of Georgia

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Georgia's economy has traditionally revolved around Black Sea tourism, cultivation of citrus fruits, tea and grapes; mining of manganese and copper; and output of a small industrial sector producing wine, metals, machinery, chemicals, and textiles. The country imports the bulk of its energy needs, including natural gas and oil products. Its only sizable internal energy resource is hydropower. Despite the severe damage the economy has suffered due to civil strife, Georgia, with the help of the IMF and World Bank, made substantial economic gains since 1995, increasing GDP growth and slashing inflation. The Georgian economy continues to experience large budget deficits due to a failure to collect tax revenues. Georgia also still suffers from energy shortages; it privatized the distribution network in 1998, and deliveries are steadily improving. Georgia is pinning its hopes for long-term recovery on the development of an international transportation corridor through the key Black Sea ports of P'ot'i and Batumi. The growing trade deficit, continuing problems with tax evasion and corruption, and political uncertainties cloud the short-term economic picture. However, revived investment could spur higher economic growth in 2000, perhaps up to 6%.

Related Topics:
Black Sea - Tourism - Citrus fruit - Tea - Grape - Manganese - Copper - Wine - Gas - Oil - Hydropower - IMF - World Bank - 1995 - GDP - Distribution - P'ot'i - Batumi - Tax evasion - Corruption - 2000

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