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Georgia Economic Profile

Georgia is an upper-middle-income country located in the Caucasus region and has a small-scale economy with a population of approximately 3.7 million. With a nominal GDP of approximately 20.6 billion dollars in 2023, it functions as an important economic hub in the Eurasian region. The economy is characterized by a diversified industrial structure of tourism, agriculture, mining, and financial services, with tourism in particular accounting for approximately 10% of GDP as a major industry.

Major industries include the export of agricultural products such as wine and tea, the mining of mineral resources such as gold and copper, and its function as a financial and distribution center in the Caucasus region. Additionally, through the free trade zone system in the Batumi region, it has become a hub for international commercial activities. In the energy sector, biomass and hydroelectric power play an important role, accounting for approximately 70% of electricity supply.

As recent economic trends, Georgia has achieved an average annual growth rate of approximately 4-5% over the past decade, implementing steady economic development. Following Russia's invasion of Ukraine in 2022, the economy has been revitalized by increased capital inflows and immigrant workers from Russia, recording 6.2% growth in 2023. The inflation rate eased to 5.6% in 2023, and the central bank is proceeding with adjustments to monetary policy.

As a notable point, Georgia's geopolitical risk management is important. While conflicts in the South Ossetia and Abkhazia regions remain outstanding issues, the government maintains a stability-oriented economic policy. Additionally, through the promotion of digitalization and growth of the startup ecosystem, investment in the technology industry is increasing. Furthermore, Georgia shows strong orientation toward EU integration, and its recognition as an official EU candidate country in 2023 marks an important turning point in opening the path toward long-term institutional reform and economic integration.