Georgia is a small transitional market economy of 3.7 million people with a per capita GDP of $6,672 (2022). Georgia is located at the crossroads between Europe and Asia, and its strategic location makes Georgia a natural logistics and transit hub along the Trans-Caspian Trade Route (or “Middle Corridor”) linking Asia and Europe via the Caucasus. Georgia’s economy is steadily growing, and it grew by 10.5 percent in 2021 and 10.2 percent in 2022.
Georgia’s economic reforms are reflected in its rankings by reputable international organizations. Georgia ranks 35th in the 2023 Economic Freedom Index of the Heritage Foundation, and, according to Transparency International, Georgia has the lowest corruption rate in the Caucasus region. In July 2023, Fitch International Credit Rating Agency affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating status with a BB rating.
In 2022, Georgia’s main export markets were the EU (15.4 percent), China (13.2 percent), Azerbaijan (12.0 percent), Russia (11.5 percent), and Turkey (7.8 percent). Georgia’s main sources of imported goods were the EU (22.6 percent), Turkey (17.5 percent), Russia (13.5 percent), China (8.3 percent), the United States (7.5 percent), and Azerbaijan (4.7 percent). Georgia’s main imports are petroleum products and natural gas, automobiles, copper ore, medicines, tobacco products, and wheat. After years of declining domestic manufacturing, most consumer goods are imported.
The Georgian government does not control the regions of Abkhazia and South Ossetia, which have been occupied by Russia since the 2008 Russia-Georgia war. The situation along the Administrative Boundary Lines (ABLs) between Tbilisi‐administered territory and the Russian-occupied territories remains tense with ongoing “borderization” efforts by Russian-led security actors and continued detentions by the de facto authorities of those allegedly “illegally” crossing the ABLs into the occupied territories.
State Department’s website for background on the country’s political environment.