Tbilisi Government continues its policy based on the economic stability of the past years which led to a continuous and harmonised development. In 2008, the nominal GDP was of GEL 16,999 (around USD 10,175 Million), while real GDP was of GEL 8,089 Million (around USD 4,842). With a GDP per capita of USD 2,315, the growth from 2007 was of 12.4%. The tops of the sectors with the fastest growth in 2008 compared to 2007 includes the financial sector, 25.8%, the constructions sector, 20.10%, the industry sector, 17.70% , the transport and communications sector, 14.70%, as well as the gas, electricity and water supply sector, 10.30%.
Trade, constructions, communications and financial services had the fastest development rate in 2008 and represented 25.20% of the total GDP. The largest share in the GDP was represented by the transport and communications sector with 10.80%. Over the past 5 years, the volume of Georgia’s external trade has known a constant growth. Compared to 2007, in 2008 the volume of external trade increased by 38.10% (around USD 64,56.90 Million). Export increased by 24.90% (around USD 1,240.20 Million), while import increased by 41.70% (around USD 5,216.70 Million). Over the last years, Georgia has varied trade partners. In 2008, its main trade partners were Turkey – USD 899.70 Million (13.90%), Ukraine – USD 669.10 Million (10.40%), Russia – USD 631.80 Million (9.80%), Azerbaijan – USD 519.30 Million (8.00%), Germany – USD 443.50 Million (6.90%), the US – USD 353.50 Million (5.50%), Bulgaria – USD 243.40 Million (3.80%), the United Arab Emirates – USD 233.40 Million (3.60%), China – USD 215.00 Million (3.30%) and Turkmenistan – USD 176.20 Million (2.70%).
Georgia’s foreign trade with EU member states increased in 2008 by 58.30% (around USD 1,807.00 Million) compared with 2007, so export amounted to around USD 268 Million (a 42.30% growth) and import was of around USD 1.530 Million (61.00%). The main EU member states which invested in Georgia are the Czech Republic (a share of 13.20%), the Netherlands (13.00%), Cyprus (8.10%), Great Britain (6.20%) and Denmark (5.50%).
Georgia has little energy resources which make it dependent of Russia’s natural gas and this has caused many conflicts. Energy problems have favoured a tighter relationship with Turkey and Azerbaijan. Georgia is already linked to these countries through the oil pipe Baku-Tbilisi-Ceyhan that carries oil from the Caspian Sea to Turkey. This oil pipe will soon be accompanied by a natural gas oil pipe and Baku – Tbilisi – Kars line which will play a crucial role in the trade between Asia and Europe.
Georgia, an important state of TRACECA Corridor, has already spent USD 200 Million for the construction of the Baku-Tbilisi-Kars line, the project being one of the 100 major projects with positive impact over railway transport. The line is 245 km long, 175 km of which are on Georgia’s territory and the rest in Turkey and Azerbaijan.
Georgia develops important partnerships with neighbouring countries. Thus, apart from its collaboration with Turkey for Baku-Tbilisi-Kars line, Georgia’s most important railway project, the collaboration with the Turkish state will focus on rolling stock manufacturing projects. Romania develops joint projects with Georgia for which the sides signed collaboration protocols between Constanţa Seaport and the two main Georgian ports, Poti and Batumi.
It is important to say that starting with May 1 at the initiative of Georgian Railways and as a result of the active collaboration with different relevant state departments, Georgia has become member of the Intergovernmental Organisation for International Carriage by Rail (OTIF).
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