FACTS AND FIGURES
GEORGIA - AT A GLANCE Area: Population: 69,7 km 2 3.7 mln Vilnius Life expectancy: 75 years Literacy: 1% National Currency: GEL (Georgian Lari) Calling code: +995 Average Air Temperature: +14.5 C Language: Georgian Capital: Tbilisi Country (code): GE Internet code:.ge Average Sea Water Temperature: +16.5 C ECONOMIC INDICATORS OF GEORGIA 216 GDP Nominal: USD 14 332 million GDP Real Growth: 2.7% GDP Per Capita: USD 3 852 Annual Inflation Rate: 1.8% Unemployment Rate: 12.% Foreign Direct Investments: USD 1 645 million Foreign Trade Turnover: USD 9 351 million Source: National Statistics Office of Georgia Ministry of Finance of Georgia 2 3
DOING BUSINESS 217-16 (+7, 216 23) HERITAGE FOUNDATION INDEX OF ECONOMIC FREEDOM 217 13 (+1, 216 23) 217 Year- 16 th place among 19 countries in the rate of Distance to Frontier Indicator (DTF) 8.2 points (2.48 points improvement) Georgia s in top ten according to the following components: Registering Property - 3 rd position Getting Credit - 7 th position Protecting Minority Investors - 7 th position Starting a Business - 8 th position Dealing with Construction Permit - 8 th position Hong Kong 1 Singapore 2 New Zealand 3 Estonia 6 Georgia 13 Lithuania16 Latvia 2 Armenia 33 Turkey 6 Azerbaijan 68 Moldova 11 Russia 114 Belarus 124 Ukraine 166 Free (1-8) Most Free (79,9-7) Moerately Free (69,9-6) Moderately Restricted (69,9-6) Restricted (69,9-6) Singapore 1 Denmark 3 Georgia 16 Poland 24 Turkey 69 Ukraine 8 4 5
FRASER INSTITUTE ECONOMIC FREEDOM OF THE WORLD 216 5 ( 7, 215-12) Georgia Armenia Lithuania Estonia Latvia Turkey Moldova Russia Azerbaijan Ukraine TRANSPARENCY INTERNATIONAL CORRUPTION PERCEPTION INDEX 216 44 ( 4, 215 48) 216 215 214 213 212 211 21 29 28 5 15 18 19 27 44 9 48 5 51 99 12 55 17 64 68 66 67 135 WORLD ECONOMIC FORUM GLOBAL COMPETITIVE INDEX 216-217 59 ( 7, 215-216 66) Switzerland[5,81] Estonia [4,78] Lithuania[4,6] Azerbaijan[4,55] Russia[4,51] Latvia [4,45] Turkey [4,39] Georgia [4,32] Armenia[4,7] Ukraine [4,] 3 35 37 43 49 55 59 79 85 6 7
AJARA - AT A GLANCE GEORGIA S NO. 1 ECONOMIC REGION AJARA - Autonomous Republic within Georgia Administrative center: Batumi Total area: 2 9 km2 Population: 337 Labor Force: 2 7 Location: South-Western Georgia (bordered by Turkey) Coastline length: 57 km Ajara Language: Georgian Average Air Temperature: +14.5 C Average Sea Water Temperature: +16.5 C Calling Code: +995 422 Electricity Standards: 22 V, 5 Hz 8 9
ACCESSIBILITY BY SEA Sea Port passenger terminal located at the center of Batumi Natural, deep and well-protected bay www.batumiport.ge BY AIR A new International Airport in Batumi since 27 Direct connection to 8 countries, 11 destinations www.batumiairport.ge BY ROAD BY RAIL Modernized railway stations More than 5 passengers served by railway station annually Yerevan-Batumi route operated since 27 www.railway.ge Road networks and highways connecting Ajara to the rest of the world: Senaki-Poti-Sarpi (46.5 km) - connects to Turkey Batumi-Akhalkalaki - Axaltsikhe (117. km) - connects to Russia, Azerbaijan, and Armenia Kobuleti - Sarpi highway (59. km) connects to Turkey www.georoad.ge 1 11
ECONOMY OF AJARA REGION EMPLOYMENT INDICATORS GROSS VALUE ADDED (GVA) (Nominal / millions GEL) Active Population (labor force), total 212 213 214 215 27 9 19 7 193 5 2 7 1,622 1,675 1,795 2,4 2,194 Employed 173 8 156 1 162 8 17 4 Unemployment Rate 16.4 18.1 15.8 15.1 Source: National Statistics Office of Georgia. 211 212 213 214 215 DISTRIBUTION OF POPULATION BY ECONOMIC STATUS (215) GROSS VALUE ADDED BY TYPES OF ECONOMIC ACTIVITIES (215) Unemployed 16% Agriculture, Fishing, Hunting and Forestry 6% Health and Social Care Education 7% Processing of Products by Householdss 3% 8% Real Estate, Finance, HORECA 23% Hired 35% Public Administration 8% Transport and Communication 8% Industry 8% Trade 14% Construction 15% Self-employed 49% Source: National Statistics Office of Georgia. Source: National Statistics Office of Georgia 12 13
BUSINESS SECTOR INVESTMENTS NUMBER OF REGISTERED BUSINESSES IN AJARA WITH FOREIGN/JOINT CAPITAL PRIVATE INVESTMENTS IN AJARA 7 6 5 4 3 2 1 47 547 497 587 688 212 213 214 215 216 5 428 366 4 3 276 195 2 152 1 212 213 214 215 216 Source: National Statistics Office of Georgia PRIVATE INVESTMENTS BY SECTORS OF ECONOMY (216) Name 212 213 214 215 Turnover (million GEL) 2 375.6 2 753.8 3 424.1 4 155.5 Number of Employed Persons 44 691 49 759 54 655 57 555 Average Monthly Remuneration of the Employed Persons (GEL) 536.7 577.3 644.9 821.5 Tourism 32% Construction 21% Source: National Statistics Office of Georgia Energy 45% Other 1% Industry 1% 14 15
PRIVATE INVESTMENTS IN AJARA STATE INVESTMENT PORTFOLIO (216) 248.5 MLN. (GEL) Water and Sewage System Rehabilitation 11% 212 213 214 215 216 Foreign Investments 59 69 182 279 32 Local Investments 93 126 94 87 126 Total Direct Investments 152 195 276 366 428 Education, Culture and Sport 1% Health and Social Care 6% Environment Protection 5% TOURISM 1 8 6 4 2 NUMBER OF TOURISTS IN AJARA 216 Foreign 472 861 398 594 Local DISTRIBUTION OF FOREIGN TOURISTS ACCOMMODATED IN HOTELS BY COUNTRIES (PERCENTAGE, 216) Others 23% Turkey 2% Road Infrastructure 51% Other Infrastructural Activities 17% Kazakhstan 2% Belarus 2% Poland 3% Armenia 6% Azerbaijan 8% Israel 11% Ukraine 11% Russia 14% 16 17
BED CAPACITY IN HOTELS AND SIMILARESTABLISHMENTS TYPES OF CONSTRUCTION ACCORDING TO THE CONSTRUCTION PERMITS ISSUED IN AJARA (216) 2, 15, 13,66 15,426 18,277 Hotels 26% Other 2% 1, 5, 213 214 215 Source: Department of Tourism and Resorts of Ajara A.R. CONSTRUCTION NUMBER OF CONSTRUCTION AREA (M 2 ) ISSUED IN AJARA 1,5, 1,2, 9, 6, 3, 888,76 213 1,154,181 214 1,325,571 215 1,493,16 216 Residential 54% FINANCIAL SECTOR FINANCIAL INSTITUTIONS IN AJARA REGION: 14 Commercial banks (with 74 service centers) 11 Microfinance institutions (2 head offices, 36 service centers) 9 Insurance companies 2 Credit unions 347 Currency exchange Units 3 Money transfer Units 18 19
1,6, 1,4, 1,2, 1,, 8, 6, 4, 2, LOANS ISSUED BY COMMERCIAL BANKS (MILLION GEL) 739,74 711,669 212 Source: National Bank of Georgia 1,161,98 1,2,774 1,45,181 213 214 215 216 REPUBLIC BUDGET OF AJARA REPUBLIC BUDGET BY EXPENDITURES INDUSTRY 4 35 3 25 2 15 1 5 PRODUCTION VALUE - MILLION GEL 28 212 33 213 376 214 381 215 PRODUCTION VALUE BY INDUSTRY SECTORS IN AJARA (215) Mln. USD 8, 7, 6, 5, 4, 3, 2, 1, 54,471 212 68,163 213 7,691 214 73,471 215 74,897 216 Manufacturing 91% Electricity, gas and water supply 3% Mining and quarrying 6% 2 21
UTILITY RATES BATUMI CITY UTILITY RATES ELECTRICITY TARIFFS NON-RESIDENT CUSTOMERS (ACCORDING TO THE VOLTAGE, INCLUDING VAT) WATER & WASTEWATER SERVICES Types of Customers Unit Water Wastewater Total Supply Voltage Tetri GEL/KWh 1 Resident customers (monthly) GEL/ capita 1.2.65 1.85 1 22/38 volts (average) (for non-resident, commercial customers) 19.796 2 6-1 kilovolts 14.964 2 Resident customers (if registered) GEL/m 3.33.18.51 3 35-11 kilovolts 13.572 RESIDENT CUSTOMERS (INCLUDING VAT) Supply Voltage Tetri GEL/KWh 3 4 Organizations, state-funded organizations and charitable organizations as specified in the Definition of Terms in the Georgian Tax Code Enterprises and individual entrepreneurs as specified in the Definition of Terms in the Georgian Tax Code GEL/m 3 2. 1.5 3.5 GEL/m 3 2.5 1.5 4. 1 Including 11 kwh 12.954 2 from 11 kwh to 31 kwh (including) 16.931 3 from 31 kwh and more 21.45 NATURAL GAS MUNICIPAL SOLID WASTE DISPOSAL FEE (PER CAPITA) GEL 1.3 MONTHLY USD 1 = GEL 2.36 1 2 Types of Customers Tetri GEL /m 3 Resident customers (registered before August 1, 28) Resident customers (registered after August 1, 28) 44. 43 54.7 Note: The tariff is calculated based on the number of family members for resident customers; as for organizations, institutions and legal entities, the calculations are based on the combination of the waste accumulation rate, the cost of waste disposal and the area in question. 3 Non-resident customers 77.2 22 23
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