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Freedom square in Tbilisi
Freedom square in Tbilisi. The design features the Georgian flag and a rose. Photo: flickr/ritingon

Real economic growth followed the Rose Revolution in Georgia. GDP growth reached 9.4% per year in 2006, compared to 1.8% growth in 2001.

Real GDP has increased from GEL (Georgian Lari) 4.8 billion ( 2.06 billion) in 2001 to GEL 7.2 billion (3.09 billion) in 2006.

Real GDP per capita has increased in the same period from GEL 1,100 (472 ) in 2001 to GEL 1,635 (700 ) in 2006.

Public revenue:

The state budget has more than quadrupled in the period between 2001 and 2007, from GEL 1 billion to GEL 6 billion.

Expenditures have increased almost twofold in the same period: from 18% of GDP in 2001 remaining steady for three consecutive years until 2003 to 32.4% of GDP in 2006. However, health care, social security and education account for only 3% of this spending increase, with defence expenditures accountable for the rest.

Investor perceptions:

In 2006, the World Bank, in its Doing Business Report, found Georgia to be the top reformer in the Commonwealth of Independent States (CIS) and the leader (among the top 10 global reformers) in the ease of doing business index in 20052006.

The 2008 report ranks Georgia among the top 20 most business friendly countries worldwide.

However, the most important measure of increasing economic and investor confidence is the rapid rise in FDI: from 2002 to 2005, FDI tripled from 131 million USD to around 450 million. In 2007 FDI reached 1.4 billion USD or 13.2% of GDP. In the first quarter of 2008 alone FDI amounted to over 450 million USD.

The economically active population is around 45 per cent out of total population (2,021 million people) and labour force participation is 62.2 per cent, out of which around 65 per cent are self-employed.

According to the department of statistics, the average monthly salary for 2006 is around 126 (277.9 GEL) as compared to 125.9 GEL in 2003.

October 2008

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