The share of agriculture in the GDP catastrophically decreasing
By Messenger Staff
Wednesday, September 7Statistical data confirm that the share of agricultural activities in the GDP of Georgia for the last several years has been decreasing dramatically. Data show that the decrease has been several fold since the Rose Revolution. This is causing serious concerns when considering that 57% of Georgia’s active population lives and works in rural areas. The productivity of the rural population is extremely poor, significantly lagging behind the national average income and the tendency continues to show a decline. The major reason for this catastrophic situation is the lack of investments and budgetary subsidies, analysts suggest. Currently there are around GEL 55 million allotted for the development of agriculture, less than 1% of the total national budget (in comparison law enforcement structures receive around GEL 1.4 billion). As for foreign direct investments, over the last three years the Georgian agriculture sector received approximately USD 45 million, only 1% of the total FDI investment in the country.