Georgia

Georgia is country of Europe located in far east Europe - Caucasus.

Details

Official Name:Georgia
Capital:Tbilisi
Total area:69 700 km2
GDP per capita:$42,408
Native Language:Georgian
Government:Unitary semi-presidential republic
Population:4,555,911
Major Religion:Orthodox Christianity
Monetary Unit:Lari (ლ) (GEL)

Georgia is a sovereign state in the Caucasus region of Eurasia. Located at the crossroads of Western Asia and Eastern Europe, it is bounded to the west by the Black Sea, to the north by Russia, to the south by Turkey and Armenia, and to the southeast by Azerbaijan. The capital of Georgia is Tbilisi. Georgia covers a territory of 69,700 km², and its population is almost 4.7 million. Georgia is a unitary, semi-presidential republic, with the government elected through a representative democracy.

Economy

Archaeological research demonstrates that Georgia has been involved in commerce with many lands and empires since the ancient times, largely due its location on the Black Sea and later on the historical Silk Road. Gold, silver, copper and iron have been mined in the Caucasus Mountains. Wine making is a very old tradition. The country has sizable hydropower resources. Throughout Georgia's modern history agriculture and tourism have been principal economic sectors, because of the country's climate and topography.

For much of the 20th century, Georgia's economy was within the Soviet model of command economy. Since the fall of the USSR in 1991, Georgia embarked on a major structural reform designed to transition to a free market economy. As with all other post-Soviet states, Georgia faced a severe economic collapse. The civil war and military conflicts in South Ossetia and Abkhazia aggravated the crisis. The agriculture and industry output diminished. By 1994 the gross domestic product had shrunk to a quarter of that of 1989. The first financial help from the West came in 1995, when the World Bank and International Monetary Fund granted Georgia a credit of USD 206 million and Germany granted DM 50 million. The production of wine is a traditional component of the Georgian economy.

Since the early 21st century visible positive developments have been observed in the economy of Georgia. In 2007 Georgia's real GDP growth rate reached 12%, making Georgia one of the fastest growing economies in Eastern Europe. The World Bank dubbed Georgia "the number one economic reformer in the world" because it has in one year improved from rank 112th to 18th in terms of ease of doing business. The country has a high unemployment rate of 12.6% and has fairly low median income compared to European countries.