Overview of Georgian Economy: Georgia in the Past
Georgia began its independent development under conditions, which seemed relatively favorable at the time. Before the break up of the Soviet Union, Georgia had a well-developed industrial sector. Food processing accounted for about two fifths of industrial production in 1990, followed by light industries (consumer goods, such as textiles and shoes). Electronics and electric engineering were a new, fast growing sector. Other major economic activities were the production of chemicals, cement, Ferro-alloy, fuel pipes, fertilizers, construction, machinery, as well as agriculture, mining, tourism and services. Agriculture had been a leading sector, highly specialized in the past following Soviet Gosplan directions, in the cultivation of citrus fruit, tea, quality wines, tobacco and flowers. In 1990, over one third of the net material product derived from agriculture, much of it was in private hands even before the transition to market economy. Trade with the USSR also played an important role in Georgia’s economy, with imports and exports amounting together to almost half of the GDP in 1988 -1990. Employment was divided comparatively equally between agriculture, industry (including construction), and services. The share of employment in agriculture (about one third of the labor force) was high as far as Georgian agriculture was characterized with high labor efficiency and relatively highly priced final products. Read more
