Economy of Georgia

In recent years Georgia has fully deregulated its electricity sector, and now there is free and open access to the market. Georgia has a sizable hydroelectric capacity, a factor that has become an increasingly important component of its energy supplies and policies. The country's topography and abundance of hydro resources give it serious potential to dominate hydroelectric markets in the Caucasus region. The Georgian Ministry of Energy estimates that there are around 26,000 rivers within Georgian territory, with approximately 300 of those rivers being significant in terms of energy production. The Ministry also claims that current projects for hydroelectric power plants total around US$2.4 billion. Alexander Khetaguri, the former Georgian Minister of Energy, proposed new hydroelectric projects worth well over 22,000 megawatts of capacity, which would cost over US$40 billion and would be privately funded. These projects alone would transform Georgia into the world's second-largest hydropower producer.

Currently, about 55% of the total labor force is employed in agriculture, though much of this is subsistence farming. Approximately 7% of the Georgian GDP (2011) is generated by the agrarian sector. Viticulture and winemaking are the most important fields of Georgia's agriculture. Over 450 species of local vine are bred in Georgia, and the country is considered as one of the oldest places of producing top-quality wines in the world.

Tourism in Georgia is one of the fastest growing sectors of the local economy, which has high potential for further development. During recent years the number of visitors to Georgia increased significantly contributing to the growth of other tourism related sectors. To foster the development of the tourism sector the Government of Georgia invests heavily in the development of the transportation and basic infrastructure, renovation and development of tourism destinations, which is a stimulus for the private investment generation. In 2018 tourism generated 3.4 billion dollars in tax revenue for Georgia. According to data from Georgia's National Tourism Administration, TASS reported that Armenia is third on the list of countries with the most visits from citizens in 2021. Turkey leads the pack in terms of trips made by visitors to Georgia last year, with 326 thousand, 2.7% fewer than in the previous year. With more than 212 thousand tourist visitors, 2.1% more than in 2020, Russia comes in second. Georgia received over 1.8 million international visits in total in 2021, an increase of 7.7% from the previous year.

Georgia is one of the key members in international TRACECA programme due to its important geographical and political location. Since it is situated right in between of Europe and Asia, the country is supposed to become a busy transitional hub of a modern Silk Road in the near future. On March 11 of 2015, Georgian media declared that the Chinese and Georgian companies have reached an agreement in Beijing concerning the developing of the deep-water port at Anaklia, which existence is crucial for the TRACECA route. The port will be constructed on a plot of over 1,000 hectares and have access to a deep sea canyon. US-Based SSA Marine was later finally chosen to Invest in and Operate Container Terminal of Anaklia Deep Sea Port in Georgia by signing an agreement with Anaklia Development Consortium on 1 August 2017.

Like most other post-soviet countries, Georgia's finance sector is dominated by banks. As of 2015, there were 21 commercial banks, of which 5 large banks controlled most of financial assets. There are some major challenges facing the banking sector. For instance, banks play a limited role in financing the real economy and in investing in activities that are required to stabilize the country's persistent trade.