Georgia is predestined for poverty due to import domination
Friday, November 7Alarmingly, Georgia is becoming more and more dependent on imports. According to analysts, one of the main factors hindering the country’s economic development is a growing trade deficit. From January-September 2008 Georgia’s foreign trade turnover was USD 5.9 billion, 34% more than last year. In this period exports were worth USD 1.2 billion but imports USD 5.667 billion, i.e. in the first nine months of 2008 Georgia’s negative trade balance was USD 3.425 billion.
Georgia has a negative trade balance with 102 countries. Georgia exports mainly raw products, and minimal labour is involved in their production. Ferroalloys lead the list of the top ten exports, followed by black metal and copper. Consumable items, which are sold in retail chains, dominate imports. This means Georgia is creating jobs in foreign countries rather than its own.
Considering the abovementioned structure of export-import, poverty and a lack of jobs are serious problems in Georgia. The number of employed people does not exceed 30% of the economically active population, and of these only 35% are fully employed. 50% of economically active people are so-called self-employed people, who try to make living in the countryside.