Georgia in Figures

FROM THE REDACTION

According to the preliminary data, in 2004 Georgian GDP grew by 8,4% compared to the previous year, and its volume was equal to 9969,8 millionGEL. The growth in 2004 was mainly stipulated by general economic revival.

Taking into account the main kinds of activities, the specified growth and structure indicators of GDP volume in 2003 and in 2004 are as follows:
A sharp increase of taxes on the produce in 2004 against the last year is remarkable. This indicator characterizes the activities of business sector in 2004 and qualitative improvement of import legalization and tax administration. The result of this change became apparent in general economic growth of GDP in market prices, collection of charged taxes for almost half of the produce, and increasing of budget sector’s incomes.
According to the on-line data given by large, medium, and small-size enterprises of the country, in January-August 2005 the volume of industrial produce in current prices (goods and services) according to main kinds of activities made up 1263,9 million GEL, which is 16,3% more than in January-August 2004.
In January-August 2005, retail distributors sold 2,6 billion worth of consumer goods, which in constant prices is 4,6% against the similar period of the last year.
According to the data for 9 months of 2005, the surplus value in process industry has increased by 12,7, and in eclectic power, natural gas and water supply sectors – by 7,9%.
Increasing of trade growth rates takes place during this period as well. According to statistical data, in 9 months period of 2005 the trade level has increased by 8,3%.
The volume of direct investments in Georgia related to the construction of Baku-Jeikhan oil pipeline and Shakhdeniz gas pipeline sharply increased in 2004, and almost reached 500 million USD. The construction of the oil pipeline in Georgia was completed in 2005, which partly caused reduction of the volume of direct investments. The process of privatization is being implemented with certain difficulties, there are cases when buyers of large units (foreign firms and organizations) cannot pay the specified sum. As a result of all this direct investments in the first half of 2005 made up 194.9 million USD, which is 43.7 million USD (or 18.3%) less compared to the similar period of 2004.
Construction sector is also developing in a sustainable way. During 9 months of 2005 27.0% more of credits were given by banks to the construction sector.
Agriculture has the biggest specific share in the Georgian economy. It has increased by 5.2% during the 9 months, against 6.1% reduction during 9 months of 2004.
According to the preliminary assessment of the State Statistics Department, current accounts deficit in 2004 made up 6,7% in relation to the GDP, which is less than in 2003 (9,8%).
Georgia is among the 17 countries which were named by the United States as the recipients of aid within the framework of “Millennium Challenge Program”. At the suggestion of the Georgian part the financial aid (more than 200 million USD) will be allocated to the regional infrastructure (roads and energy sector) and strategic sectors: rehabilitation of agriculture and tourism. In 2004 direct foreign investments made up 499,1 million USD; as to the reserve assets, during 2004 their volume made up 192 USD.
In the first quarter of 2005 the volume of transported cargo has increased by 2,7%. The number of passengers transported by air transport has increased by 14,4% compared to the last year’s indicator.
Portfolio investment and financial derivatives are insignificant, it was still impossible to form a full-fledged financial market.
The balance of other investments during these years is as follows:
The year 2004 – 8.3 million USD, while the first half of 2005 – 15.5 million USD.
The volume of reserve assets during 2004 increased by 178.5 million USD, and in first half of 2005 for another 71.0 million USD.
The output in the telecommunications sector in the 1st and the 2nd quarter of 2005 made up 144,2 million GEL, which is 21,3% more compared to the similar period of the last year.
In the first half of 2005 there was a firm demand of commercial banks for foreign currency. In order to avoid abrupt fluctuations of GEL exchange rate the National bank of Georgia widely used credit auctions, the total turnover of which made up 83,3 million GEL during the same period, of which 79,3 million was bought by the Georgian National Bank.
In the current period of 2005 seasonal factor and increasing of excise tax on tobacco and oil products envisaged by the new Tax Code have had an effect on the price level.