Georgia - Market OverviewGeorgia - Market Overview
Georgia is a small transitional market economy of 3.7 million people with a per capita GDP of $4,345 (2018). Georgia is located at the crossroads between Europe and Asia. Its strategic location makes it a natural logistics and transit hub along the “New Silk Road” linking Asia and Europe via the Caucasus.
The Georgian economy is growing steadily, but external shocks in the region, such as international sanctions related to the Russia-Ukraine conflict have had a negative impact on Georgia’s economy and contributed to a relatively low growth rate 2.9 percent in 2015 and 2.8 percent in 2016. However, in 2017 and 2018 the economy grew by 4.8 and 4.9 percent respectively.
In June 2014, Georgia signed an Association Agreement (AA) and Deep and Comprehensive Free Trade Area (DCFTA) with the European Union (EU). Through reduced tariffs and the removal of technical barriers to entry of exports to the EU, the DCFTA gives Georgian products access to over 500 million people in the EU. Reciprocally, products from the EU now have easier access to the Georgian market. The government is in the process of approximating EU legal and regulatory standards.
Launched in 2009, the bilateral U.S.-Georgia Strategic Partnership Commission (SPC) holds regular government-to-government dialogues, including meetings of an Economic, Energy, and Trade Working Group that aims to coordinate Georgia’s economic development strategy and expand bilateral U.S.-Georgia economic cooperation. In addition to the SPC, in May 2012, the United States and Georgia launched a High-Level Trade and Investment Dialogue to encourage bilateral trade.
Georgia’s successful economic reforms are reflected in its rankings by reputable international organizations. Since 2003, the World Bank has recognized Georgia as one of the world’s fastest reforming economies and as a leader in fighting corruption. Georgia ranks 6th in the 2019 World Bank’s Ease of Doing Business index, 16th in the 2019 Economic Freedom Index, and 66th out of 140 global economies in 2018 Global Competitiveness Report. According to Transparency International, Georgia has the lowest corruption rate in the region and International Credit Rating Agencies (Fitch, Moody’s Investors Service and Standards and Poor’s) rate Georgia as a stable country.
At present, Georgia’s main export markets are Azerbaijan (15.0 percent), Russia (13.0 percent), Armenia (8.3 percent), Bulgaria (7.7) and Turkey (6.9). Georgia’s main sources of imported goods are Turkey (16.0 percent), Russia (10.3 percent), China (9.1 percent), Azerbaijan (6.4 percent) and Ukraine (5.7). Georgia’s main imports are petroleum products and natural gas, automobiles, copper ore, medicines, tobacco products, and wheat. After years of declining domestic manufacturing, most consumer goods are imported.
The Georgian government does not control the separatist territories of Abkhazia and South Ossetia, which have been occupied by Russia since the 2008 Georgia-Russia war. The situation along the administrative boundary line (ABL) between Georgian‐controlled territory and the separatist regions remains tense, with ongoing borderization efforts by de facto authorities and continued de facto detentions of those allegedly “illegally” crossing the ABL into the occupied territories.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
The Georgian economy is growing steadily, but external shocks in the region, such as international sanctions related to the Russia-Ukraine conflict have had a negative impact on Georgia’s economy and contributed to a relatively low growth rate 2.9 percent in 2015 and 2.8 percent in 2016. However, in 2017 and 2018 the economy grew by 4.8 and 4.9 percent respectively.
In June 2014, Georgia signed an Association Agreement (AA) and Deep and Comprehensive Free Trade Area (DCFTA) with the European Union (EU). Through reduced tariffs and the removal of technical barriers to entry of exports to the EU, the DCFTA gives Georgian products access to over 500 million people in the EU. Reciprocally, products from the EU now have easier access to the Georgian market. The government is in the process of approximating EU legal and regulatory standards.
Launched in 2009, the bilateral U.S.-Georgia Strategic Partnership Commission (SPC) holds regular government-to-government dialogues, including meetings of an Economic, Energy, and Trade Working Group that aims to coordinate Georgia’s economic development strategy and expand bilateral U.S.-Georgia economic cooperation. In addition to the SPC, in May 2012, the United States and Georgia launched a High-Level Trade and Investment Dialogue to encourage bilateral trade.
Georgia’s successful economic reforms are reflected in its rankings by reputable international organizations. Since 2003, the World Bank has recognized Georgia as one of the world’s fastest reforming economies and as a leader in fighting corruption. Georgia ranks 6th in the 2019 World Bank’s Ease of Doing Business index, 16th in the 2019 Economic Freedom Index, and 66th out of 140 global economies in 2018 Global Competitiveness Report. According to Transparency International, Georgia has the lowest corruption rate in the region and International Credit Rating Agencies (Fitch, Moody’s Investors Service and Standards and Poor’s) rate Georgia as a stable country.
At present, Georgia’s main export markets are Azerbaijan (15.0 percent), Russia (13.0 percent), Armenia (8.3 percent), Bulgaria (7.7) and Turkey (6.9). Georgia’s main sources of imported goods are Turkey (16.0 percent), Russia (10.3 percent), China (9.1 percent), Azerbaijan (6.4 percent) and Ukraine (5.7). Georgia’s main imports are petroleum products and natural gas, automobiles, copper ore, medicines, tobacco products, and wheat. After years of declining domestic manufacturing, most consumer goods are imported.
The Georgian government does not control the separatist territories of Abkhazia and South Ossetia, which have been occupied by Russia since the 2008 Georgia-Russia war. The situation along the administrative boundary line (ABL) between Georgian‐controlled territory and the separatist regions remains tense, with ongoing borderization efforts by de facto authorities and continued de facto detentions of those allegedly “illegally” crossing the ABL into the occupied territories.
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.