Agriculture’s share of GDP
By Messenger Staff
Thursday, March 5Existing statistical data and independent evaluation concur that agriculture’s share of the Georgian economy is decreasing. In 2003 agricultural products made up 18.4% of Georgia’s GDP, in 2004 the figure was 16.1%, in 2005 14.8%, in 2006 11.2% and in 2008 agriculture’s share of GDP was 10%.
Despite this decrease in agricultural activity this sector is creating a serious number of jobs. However these are mostly of a seasonal character and therefore not that effective in cutting unemployment. The income of the employed and general revenues in the sector are low, not enough to stimulate the sector.
Officials explain that the decrease of agriculture’s share in GDP is mostly determined by the rapid development of other sectors. However according to data from the Economic Policy Research Centre, import of agricultural goods reached almost USD 942 million in 2008, whereas only USD 250 million were exported.
Production decreases are evident in wheat, corn, vegetables and potatoes. In 2008 for instance Georgia imported 70% of its consumed potatoes.