The economy of Georgia is an Emerging Free Market Economy.
Before the 20th century, Georgia had a largely agrarian economy. Georgia’s modern economy has traditionally revolved around Black Sea tourism, the cultivation of citrus fruits, grapes, and tea, mining of manganese and copper, and producing wine, metals, chemicals, textiles, and machinery all as the output of a large industrial sector.
The Georgian economy has suffered many crises and declined because of two wars: the War of Abkhazia 1992, and August War 2008. The country is in a difficult situation and the economy is slowly changing; however, it is changing for the better. Fortunately, the country is ready for all the challenges needed for sustainable economic development.
The National Bureau of Statistics released the first data on March’s economic growth. In the third quarter of 2019, Georgia’s real GDP (GDP) increased by 6% compared to the same period of the previous year.
The figure was 4.6% in February and 3.5% in January. Accordingly, the average growth in the first quarter of the year was 4.7%.
In March, all sectors of the economy grew except for construction, which saw a decline.
The Ministry of Finance has already published the draft state budget for 2019. According to the project, the economic growth forecast for 2019 was set at 4.5%.
However, according to the budget project, the GDP deflator forecast to be 3.5% in 2019; the inflation rate is projected within the National Bank’s targeted inflation of 3.0%. As projected in the State Budget 2019, the nominal GDP of 2019 is 45.1 billion GELs.