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Economy of Georgia


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household was GEL 347 (about 200 USD). IMF 2007 estimates place Georgia's nominal GDP at US$10.3 billion. Georgia's economy is becoming more devoted to services (now representing 65% of GDP), moving away from agricultural sector ( 10.9%).

Transport

Today transport in Georgia is provided by means of rail, road, shipping and air travel. Positioned in the Caucasus and on the coast of the Black Sea, Georgia is a key country through which energy imports to the European Union from neighbouring Azerbaijan pass. Traditionally the country was located on an important north-south trade route between European Russia and the Near East and Turkey.

In recent years Georgia has invested large amounts of money in the modernisation of its transport networks. The construction of new highways has been prioritised and, as such, major cities like Tbilisi have seen the quality of their roads improve dramatically; despite this however, the quality of inter-city routes remains poor and to date only one motorway-standard road has been constructed - the ს 1.

The Georgian railways represent an important transport artery for the Caucasus as they make up the largest proportion of a route linking the Black and Caspian Seas, this in turn has allowed them to benefit in recent years from increased energy exports from neighbouring Azerbaijan to the European Union, Ukraine and Turkey. Passenger services are operated by the state-owned Georgian Railways whilst freight operations are carried out by a number of licensed operators. Since 2004 the Georgian Railways have been undergoing a rolling program of fleet-renewal and managerial restructuring which is aimed at making the service provided more efficient and comfortable for passengers. Infrastructural development has also been high on the agenda for the railways, with the key Tbilisi railway junction expected to undergo major reorganisation in the near future. Additional projects also include the construction of the
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