General Description of Industrial Sector in Georgia

Georgia's industrial sector is rather diversified, encompassing food and timber processing, production of fertilizers, coal and magnesium ore mining, steel and non-ferrous metallurgy, and locomotive, ship building and aircraft assembly plants. In Georgia's industrial sector, companies are being modernized and modern managerial culture has been introduced. Many Georgian industrialists, especially new-generation entrepreneurs, are successfully meeting the challenge of upgrading production to international standards in order to target the demanding international market.

Impact of Government reforms - Government's economic reforms have created favorable investment climate for development of industry.

Tax reform - Under the tax reform, the number of taxes was reduced 3-fold and tax rates were lowered considerably. The new tax code enacted in 2005, introduced flat taxes and significant procedural and institutional innovations. It levies only 7 taxes, including the import duty.
Reform of licensing and permitting procedures - The number of business activities subject to licensing and permitting regimes was reduced by 84%. Licensing procedures were simplified and the "one stop shop" and "Silence is consent" principles were introduced.
Reform of standardization and technical regulation - The technical regulation system was reformed to give way to a voluntary standards system and to reduce state regulation in this sphere. The new laws introduced technical regulations harmonized with international standards that significantly simplify export and import procedures for businesses.
Labor Regulations - Georgia's labor regulations are very liberal, creating very low costs of hiring and firing workers and high flexibility in relations between employers and employees.

The government's policy is designed to facilitate integration into international markets and implementation of economic reforms. Reform has yielded strong growth of industrial output and the share of industrial output produced by private enterprises (see graphs below).

Industrial Output, Current Prices

Manufacturing is the leading sector of industrial output.

Composition of Industrial Output by types of Economic Activity

News

Georgian National Investment Agency hosted the delegation of Israeli businessmen

20th Annual Crans Montana Forum

The 1st National Congress of Georgian Hazelnut Growers held at Sheraton Metechi Palace

RSS

Despite risks, Arab investors flocking to Georgia - AFP

Bank of Georgia and Geocell – GSM share the grand prize of ... - Georgian Business Week

FBC - Georgia hosted French delegation - Georgian Business Week

OFFICIAL EXCHANGE RATE OF LARI
2009-07-04

EUR		2.3245		0.0022
USD		1.6614		0.0075

All rates

Partner WEBSITES

Developed by ITNOVATIONS