te the severe damage the
economy has suffered due to civil strife, Georgia, with the help of
the IMF and World Bank, has made substantial economic gains since
2000, achieving positive GDP growth and curtailing inflation.
Georgia had suffered from a chronic failure to collect tax revenues;
however, the new government is making progress and has reformed the
tax code, improved tax administration, increased tax enforcement,
and cracked down on corruption. In addition, the reinvigorated
privatization process has met with success, supplementing government
expenditures on infrastructure, defense, and poverty reduction.
Despite customs and financial (tax) enforcement improvements,
smuggling is a drain on the economy. Georgia also suffers from
energy shortages due to aging and badly maintained infrastructure,
as well as poor management. Due to concerted reform efforts,
collection rates have improved considerably to roughly 60%, both in
T'bilisi and throughout the regions. Continued reform in the
management of state-owned power entities is essential to successful
privatization and onward sustainability in this sector. The country
is pinning its hopes for long-term growth on its role as a transit
state for pipelines and trade. The construction on the
Baku-T'bilisi-Ceyhan oil pipeline and the Baku-T'bilisi-Erzerum gas
pipeline have brought much-needed investment and job opportunities.
Nevertheless, high energy prices have compounded the pressure on the
country's inefficient energy sector. Restructuring the sector and
finding energy supply alternatives to Russia remain major challenges.

GDP (purchasing power parity):
$17.79 billion (2006 est.)

GDP (official exchange rate):
$5.272 billion (2006 est.)

GDP - real growth rate:
8.8% (2006 est.)

GDP - per capita (PPP):
$3,800 (2006 est.)

GDP - composition by sector:
agriculture: 17.7%
industry: 27.5%
services: 54.8% (2006 est.)

Labor force:
2.04 million (2004 est.)

Labor force - by occupation:
agriculture: 40%
industry: 20%
services: 40% (1999 est.)

Unemployment rate:
12.6% (2004 est.)

Population below poverty line:
54% (2001 est.)

Household income or consumption by percentage share:
lowest 10%: 2.3%
highest 10%: 27.9% (1996)

Distribution of family income - Gini index:
38 (2003)

Inflation rate (consumer prices):
10% (2006 est.)

Investment (gross fixed):
30% of GD