BANK OF GEORGIA Financial Performance and Strategy
Key drivers of economic growth
.
Export-led growth with sufficient diversity
Agricultural product exports of US$282m in 2009
•
Ferroalloy exports of US$426m in 2008
Aircraft, rail car, vessels and vehicles exports of US$122m
in 2008 and US$107m in 2009
Fertilizers exports of US$105m in 2008 and US$60m 2009
Machinery exports of US$29m in 2008 and US$30m in
2009
Oil and gas pipelines
Russia-Georgia-Armenia pipeline - 5.8 bcm/year
Shah-Deniz (BTE) gas pipeline - 6.6 bcm/year
Iran-Azerbaijan-Georgia (IAG) gas pipeline - 3.5
bcm/year
Baku-Supsa oil pipeline - 5.75 mt/year
Baku-Tbilisi-Ceyhan (BTC) oil pipeline - 50 mt/year
Huge untapped hydro-power resources - only 18% of
Georgia's hydro potential is being utilized; current export
capacity of c. 150 MW
Increasing domestic consumption
Consumer spending in 2008 - US$3.8bn
estimated average household size of 3.7, far
higher than in most CEE/CIS peers
new construction has not caught up with the
cumulative deterioration of the Soviet-built
housing stock
less than 18,000 households (out of the
estimated total of 1.3 million) have mortgages
Consumer debt per capita (including mortgages) stood
at US$92 as of 31 December 2009
Organized retail trade (supermarkets, hypermarkets,
consumer electronics & white goods, etc) account for a
low share of total
Debt /GDP under 30%; Retail loans/GDP under 10%
■ FDI expected at US$0.8 bn in 2010
Economic growth is supported by
■ Free industrial zones created around Poti (port), Kutaisi (second largest city) etc. (Tax rates in zones largely 0%)
■ Net transfers from abroad
Increasing consumer spending
■ Sustained government spending
Source: Ministry of Economic Development, Ministry of Finance, National Statistics Office of Georgia
LOLEJN
BANK OF GEORGIA
www.bog.ge/ir
April 2010
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