Presentation on Economic Situation and Investment Possibilities in Georgia

General Economic Overview

 

After the August incursion and the global financial crisis, the Government of Georgia set the following priorities: Sustaining and strengthening the economy; Further democratic and economic reforms; Deepening European and Euro-Atlantic integration.

 

In 2008 the GDP growth was 2.3% (in real figures 12.800 billion USD).

 

The GDP growth rate in 2009 was -3,8% (in real figures 10.767 billion USD).

 

In January-June 2010, GDP growth equaled to 6.4% (in real figures 5.303 billion USD).

 

In 2008 GDP per capita equaled to 2.921 thousand USD.

 

In 2009 GDP per capita equaled to 2.455 thousand USD.

 

In January-June 2010, GDP per capita equaled to 1.195 thousand USD.

 

Inflation rate in 2008 was 5,5% and in 2009 it was 3%. In 2010 inflation is 10.5% (NBG info).

 

In 2008, the foreign trade turnover amounted to 7.6 bln.USD, among them export was 1.5 billion USD and import was 6.1 billion USD.

 

In 2009, the foreign trade turnover amounted 5.513 bln.USD, among them export was 1.135 billion USD and import was 4.378.3 billion USD.

 

In January-October 2010, the foreign trade turnover amounted to 5.23 billion USD (18% increase in comparison with same period of last year), among them export was 1.23 billion USD (33% increase) and import was 4 billion USD (14% increase).

 

The foreign direct investment in Georgia in 2008 amounted to 1.564 billion USD.

 

In 2009 foreign direct investment equaled to 658,4 million USD.

 

In January-September 2010, foreign direct investment amounted to 433 million USD.

 

Source: National Statistics Office of Georgia

 

The fact that our economy is standing despite the severe consequences of the August Russian aggression and the global financial crisis, is thanks to the strength of our institutions, open economy, simplified tax code and liberal economic reforms.

 

Banking Sector

 

The Georgia’s financial sector demonstrated its robustness and resilience to these two shocks. That has been possible due to the healthy banking sector. As for August 2010, there are about 120 branches of local and foreign Commercial Banks in Georgia. At present subsidiaries and branches of commercial banks from Turkey, Azerbaijan, Russia, Kazakhstan, Germany, France, Ukraine and Great Britain are operating in the Georgian market. These banks are: Procredit Bank, VTB, HSBC, BTA, HALYK BANK, TAO-Private Bank, Ziraat Bank, Bank Republic - Societe General, the International Bank of Azerbaijan.

 

 

As for September 1, 2010, the equity Capital of Commercial Banks in US dollars composes approximately 1 billion US Dollar.

 

Loans, granted by commercial banks to the National Economy (stock) as for September 2010, consider approximately 5,580,720 bln GEL. To compare with 2006 this figure is increased fast three times (According to statistical data, in 2006 Loans granted by commercial banks was 2.2. bln GEL).

 

Total Bank Deposits in 2006 considered 1.8 bln GEL. It is notable that in competition of 2006 in the year of 2010 total bank deposits are 3.2 bln GEL.

 

As for 30 September 2010, the foreign reserves in National Bank of Georgia equaled to 2. 110 240 000 billion USD.