2000
2001
Production by Households, tons
25,942
8,160
21,390
Total Production, tons
60,330
23,999
23,000
Household Share in Total Production, percent
0.43%
0.34%
0.93%
Source: State Department of Statistics, author's estimates
3.3 Trade
Georgian Foreign Trade Statistics. In 2002 Georgian foreign trade turnover (registered) totalled US$1045,0 million, that is 104,6 % of previous year's data for the appropriate period. From this export is US$325,0 million (101,5% accordingly) and import -US $720,0 million (106,1%). Negative trade balance of Georgian trade for 2002 stood at US$395,0 million.
The following table shows the trends in Georgia's trade balance:
Number of Countries
Foreign Trade Balance - US$ million
Negative trade balance
Year 2001
88
378,8
Year 2002
89
454,2
Positive trade balance
Year 2001
30
20,1
Year 2002
40
59,2
All trade partners
Year 2001
118
358,7
Year 2002
129
395,0
In 2002 Georgia had
a negative trade balance with 89 partner countries, with whom the trade gap
amounted 454,2 million US Dollars in comparison with the last year when the
same figure was indicated by 378,8 million US $ with 88 partner countries.
Georgia had a positive trade balance of US $ 59,2 million with 40 countries,
and in 2001 with 30 countries (positive balance of US $ 59,2 million).
In 2002 the foreign trade with CIS countries have increased. The 30.6% of the
trade gap covers these countries (29.7% for the same period of the last
year). The foreign trade with CIS countries amounted US $ 4337.4 million in
2002 (the amount increased by 10.6% in comparison with the same period of the
year 2001). CIS countries share 41,9% of Georgia's foreign trade turnover,
among them exports share 48,7% and imports 38,8% (accordingly 39.6%; 45.1%
and 37.0% - in the year 2001).
Trade turnover with Russia reflected US $ 162.8 million and has declined by
1.2% in comparison with the same period of the year 2001, and Georgian
foreign trade turnover with Russia have decreased by 0.9 per cent points from
16.5% to 15.6%.
Georgian
Foreign Trade: 2001-2002 (in US$ millions)
Georgia's Top Ten Export
Destinations in 2002 (in US$ millions)
Major export products in
2002 (in US$ millions)
3.4 Construction
Overview of Georgian Construction Sector. Georgian construction sector mainly consists of civil, industrial, hydro-technical, transport, and communication construction projects.
The construction sector was established long before the formation of the country as a legal state and has passed from primitive buildings to complicated and sophisticated complexes. Throughout various stages of the country’s development, buildings and other construction projects reflect the period in which they were built. For nearly the last two centuries Georgia was part of the Russian empire and the Soviet Union, thus, the development of the construction sector was in accordance with the laws and conditions accepted by Russia and the FSU, i.e. massive construction of industrial facilities. During that period the construction sector employed almost 250,000 people and produced construction materials worth approximately US$1.5 million annually.
After the collapse of the Soviet Union, the Georgian construction sector ceased development, which was mainly caused by the political, social and economic conditions of the country (i.e. a coup, civil war, and armed conflicts in Abkhazia and South Osetia), and also by non-efficient, highly energy consuming technologies and outdated equipment and machinery. As a result, almost one hundred percent of the construction factories and facilities ceased functioning.
During the early ‘90s, when Georgia became independent and positioned itself towards democracy and integration into the world economy, the Georgian construction sector realized that it was totally unprepared to meet the demands and standards of country’s development phase. The main negative aspects characterizing such non-preparedness were:
1. Non-efficient and partially destroyed equipment and machinery.
2. Lack of investment in majority spheres of construction (except private construction).
3. Weak management of the sector from the government’s side.
4. Lack of professional managers and specialists with knowledge of international principles.
5. Great need of specialized trainings for the staff.
6. Harsh economic condition of scientific, projecting and architecture institutions.
7. Import of foreign construction materials and workforce.
Among other important factors, considering the importance and crucial character of the construction industry for the country’s economic development, the Georgian government made several positive steps towards rehabilitation of the construction industry to create a favourable investment environment including passing the law on promotion and guarantee of foreign investment activities, and instituting a process of restructuring and privatisation. A few years ago the government of Georgia launched a process of restructuring and privatisation of large Soviet era construction enterprises. As a result, various non-efficient, illiquid and monster enterprises have changed their organizational structure and been converted into small cost and energy efficient, liquid plants. Derived from the privatisation process the majority of state construction companies have become private joint stock and limited liability companies. In addition, a huge number of uncompleted construction sites have been privatised and completed.
Main Indicators of Development in the Construction Sector. The slight revival and positive trends in the construction sector have been noticed since 1995 – the period when the Georgian national currency the Lari (GEL) was introduced.
The table below indicates the main financial flow in the construction sector during 1995-2002 (first nine months).
Year
Monetary unit
Investment in main capital
Government investment
Construction and engineering work
Personal funds of population*
Foreign investment
1990
Million Rubles
2545
2233
1313
93
-
1991
2698
2435
1882
140
-
1992
12368
11521
8636
532
-
Страницы: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 54
