Economic instruments, financing and privatization

Georgia has made some significant progress in moving towards macroeconomic and financial stability, but the process remains partial and vulnerable. Growth has, however, remained modest for a number of reasons including drought, interruptions in the energy supply, and a lack of industrial and agricultural restructuring. Fiscal performance remains a problem, with tax revenues remaining amongst the lowest in the region. This is primarily due to institutional weakness, the large shadow economy and widespread corruption. During 2001, Georgia’s GDP grew by 4.5% and GDP per capita was US$ 588. The country faces many challenges. It is struggling to improve living standards, to reduce poverty, to fight corruption, to resolve territorial conflicts and to impose law and order. The Government has made progress in developing a poverty reduction strategy, which focuses on improving the business environment with a view to fostering private sector development and stimulating economic growth. The privatization of State property is an important part of Georgia’s economic reforms. The privatization process has progressed well in the small and medium-sized enterprises and is continuing in large-companies. The low level of foreign investment will hinder the further development of the private sector in the near future.

Sustainable Development Goals:

Climate Action