Ministry of Economy and Sustainable Development of Georgia Georgia as a Gateway to Europe and Asia December, 2019 Country Profile 2 Economic Growth ECONOMIC GROWTH(%) Economic growth in 2018 4,8 4,8 5,1 4.8 % 4,4 3,6 3,0 2,9 Average real GDP growth projection 5.0 % in 2020-2024, according to IMF 2013 2014 2015 2016 2017 2018 2019 Jan-Oct* GDP BY SECTORS - 2018 ECONOMIC GROWTH PROJECTIONS 2020-2024 (IMF) Industry 6,0% 14,6% Other sectors 5,0% 22,9% 5,0% 4,6% Trade 4,0% 13,9% 3,2% 3,0% 2,7% Financial Sector 2,2% 6,1% 2,0% Education 2,0% 4,5% Transport 6,3% 1,0% Health and social work 0,0% 0,0% 4,2% Real estate AgricultureConstruction Georgia Armenia Ukraine Turkey Azerbaijan Russia Belarus 11,4% 7,8% 8,3% 3 Foreign Direct Investments FOREIGN DIRECT INVESTMENTS TOP INVESTOR COUNTRIES 2018 14,0% 12,0% 12,1% 11,6% 10,0% 10,4% 10,9% 8,0% 7,1% 7,5% 7,2% 6,0% 6,4% 6,0% 4,0% 2,0% Azerbaijan 865,6 1 134,0 1 048,2 1 039,2 1 837,0 1 729,1 1 650,3 1 962,6 1 265,2 0,0% 246.4 mln. USD 2010 2011 2012 2013 2014 2015 2016 2017 2018 FDI (mln. USD) FDI, % GDP Other sectors, 15% Transports and Netherlands United Kingdom communications, 208.4 mln. USD 178.8 mln. USD 13% Manufacturing, 11% FDI BY ECONOMIC Financial sector, In 2017 FDI in Georgia amounted to 1,962.6mln. USD reaching all time record 21% high. SECTORS - 2018 Hotels and restaurants, 6% In 2018 FDI amounted to 1,265.2 mln. USD. Real Estate, 10% Construction, 14% In first half of 2019 FDI amounted to 473.2 mln. USD. Energy sector, 10% 4 External Trade Top 5 trading partners in total Exports – 2019 Jan-Oct* Top 5 trading partners in total Imports – 2019 Jan-Oct* 17.7% Turkey 13.5% Russia 13.2% 10.6% Russia Azerbaijan 10.2% 9.8% China 7.6% Armenia Bulgaria 6.6% 5.8% Ukraine 4,9% Azerbaijan Germany Top 5 commodity positions by Exports - 2019 Jan-Oct* Top 5 commodity positions by Import - 2019 Jan-Oct* *Preliminary data Source: www.geostat.ge 5 Rapidly Increasing Market Size by FTAs CIS - FTA EFTA - FTA 80% of Goods Free From Import Tariff Turkey - FTA EU - DCFTA China - FTA US, Canada, Japan - GSP India – Ongoing Consultations on Israel – Ongoing Feasibility Study FTA on FTA 6 Tourism Statistics INTERNATIONAL VISITORS (THOUSAND) 7000,0 11.1% 5000,0 6 483 5 393 3000,0 5 256 7 203 1000,0 2015 2016 2017 2018 Share (%) 100,0 80,0 60,0 40,0 20,0 0,0 2014 2015 2016 2017 2018 2018/11 2019/11 Sea 0,8 0,7 0,7 0,5 0,5 0,4 0,5 Railway 1,0 0,9 0,8 0,8 0,9 1,0 1,1 Air 12,8 14,0 18,5 22,2 24,8 25,1 24,2 Land 85,4 84,4 80,0 76,5 73,8 73,6 74,3 Source : Information Centre, Information and Analytical Department, Ministry of Internal Affairs of Georgia 7 Business Friendly Environment Doing Business Economic Freedom Corruption Perception Crime Index (out of 190 countries) (out of 180 countries) (out of 180 countries) (out of 125 countries) #7 #16 #41 #5 Up from #112 in 2005 Up from #99 in 2005 Up from #130 in 2005 World Georgia is one of the leading Majority of Georgia’s reforms Alongside recognitions as the In the last ranking of countries countries in the world in terms are oriented on the top reformer in the world, by crime index, Georgia was of starting a business, dealing development of free, open and Georgia is the leader in the named as one of the safest with bureaucracy and the transparent, private-sector wider region in terms of places in the world number of procedures required driven market economy fighting with corruption to launch and operate an enterprise 8 Transport Network of Georgia Sea Ports & Terminals Airports Tbilisi International Airport (TAV) Poti Sea Port (APM Terminals) • Berths - 15 •Capacity: ≈3 000 passengers per hour • Depth: 8-11m Kutaisi International Airport (UAG) • Annual Capacity: 4 mln tons of dry cargo, 1 mln tons of oil products, 1.0 mln. Ferry cargo, •Capacity: ≈800 passengers per hour 550 000 TEU Batumi International Airport (TAV) Batumi Sea Port (BIH) •Capacity: ≈600 passengers per hour • Berths - 11 • Depth: 9-12m Ambrolauri Domestic Airport (UAG) • Annual Capacity: 15 mln tons of oil products, 2 mln tons of dry cargo, 0.7 mln. Ferry cargo, •Capacity: ≈100 passengers per hour 180 000-200 000 TEU, 180 000 passengers Mestia Domestic Airport (UAG) Kulevi Sea Terminal (Socar) •Capacity: ≈50 passengers per hour • Berths - 2 • Depth: 17.10 m and 13.60 m Natakhtari Domestic Airport (UAG) • Annual Capacity: 6 mln tons of oil products •Capacity: ≈50 passengers per hour Supsa Sea Terminal (BP) Telavi Domestic Airport (UAG) • Annual Capacity: 8 mln tons of oil •Flight training Roads Railway Pipelines Baku–Tbilisi–Ceyhan (BTC) pipeline (BP 30.1 %) Baku-Supsa Pipeline (BP) • Total Length: ≈ 20 000 km •Total Length: 1,342 km •Total Length: 1768 km •Total Length: 830 km, Diameter - 530 mm • Capacity: min. 8-10 thousand motor vehicles, max. •Annual Capacity: 28 mln tons Annual Capacity: 60 mln tons • •Annual Capacity: 8 mln tons 50 thousand motor vehicles per day (highway) 9 Transport Infrastructure Development Extension of Trans-European Transport Network (TEN-T) TEN-T is divided into “Core” and “Comprehensive” networks: ,,Comprehensive“ network – covers the whole EU region and includes all transport modes ,,Core“ Network - is a part of the comprehensive network consisting of the most important transport connections and is considered as a high priority Completion of the TEN-T Core Network is planned by 2030 and of the Comprehensive Network by 2050 High-level Understanding between Georgia and the EU on the Trans-European Transport Network Extension to Georgia was signed in Brussels on 18 July 2018 Extension of the TEN-T to the Eastern Partnership (EaP) region officially came into force on 9 January 2019 10 Transport Infrastructure Development TEN-T Investment Action Plan On 15 January 2019, the European Commission published the Indicative TEN-T Investment Action Plan The Indicative TEN-T Investment Action Plan identifies priority investments of around 12.8 billion Euros for the EaP countries According to the Investment Plan, 18 priority projects with the total cost of around 3.4 bln Euros have been identified in Georgia Completion of the priority projects listed in the Investment Action Plan is envisaged by 2030 11 Large-scale Railway Project by Georgia and Neighbouring Countries Baku - Tbilisi - Kars Railway • Rehabilitation, reconstruction and construction of the 180 km-long railway line • Capacity: 5 - 15 mln tons, 1 mln passengers • Major construction works on the Georgian territory has been completed •BTK line is currently in the testing mode 12 Implementation of Large-scale Transport Infrastructure Projects Donors and Partners WB – World Bank EU – European Union Kuwait Fund EIB – European ADB – Asian Investment Bank Development Bank JICA – Japan AIIB – Asian International Infrastructure Cooperation Agency Investment Bank 13 Development of Transport Routes and Corridors Georgia is a member since 1993 Georgia is a member since 2016 საქართველო საქართველო 14 Development of Transport Routes and Corridors Black Sea - Caspian Sea Transport Corridor Lapis Lazuli Route Persian Gulf-Black Sea Corridor Participating countries: Turkmenistan, Participating countries: Afghanistan, Participating countries: Iran, Azerbaijan, Azerbaijan, Georgia, Romania Turkmenistan, Azerbaijan, Georgia, Turkey Armenia, Georgia, Bulgaria, Greece 15 Railway - Based Multimodal Transportation between Europe and Asia Middle Corridor Note: Khorgos - Georgia Lead time: 9-10 days Lianyungang - Khorgos Lead time: 5 days 16 China-Europe Projections Total TEU Factors: . Increased tendency in transportation of tomato pasta to 25 000 Italy 21 250 20 000 . Block trains from Lianyungang to Istanbul . Local export and transit from Turkey 15 000 . Rhine-Danube direction development 10 000 5 000 2 774 1 332 220 132 198 - 2015 2016 2017 2018 2019 2020 Forecast 17 Statistics Number of Containers (TEU) Handled by Georgia’s Sea Ports in 2013-2019 Transported cargo by Georgian Railway 2018 2019/10 Local Local 526 059 18,1% 16% Transit Export 41,6% Export Transit 12% 11,6% 446 972 453 938 48% 403 447 Import Import 394 787 28,7% 24% 379 816 370 128 +15.0% 329 805 319 870 Growth in railway freight in TEU 33.6% growth in container business in 2019/10 compared to 2018/10 37.2% growth in container business in 2018 compared to 2017 7 000 5 500 4 000 +42.1% 2 500 1 000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2013 2014 2015 2016 2017 2018 2017/102018/102019/10 2019 2018 2017 2016 2015 2014 18 Statistics International Road Transport of Goods in 2014-2019 (mln. tons) 3,8 4,0 4,0 3,9 3,4 3,6 3,6 3,1 3,0 3,3 3,3 2,6 2,7 2,9 1,4 1,3 1,2 0,7 0,9 1,0 1,0 2014 2015 2016 2017 2018 2018/10 2019/10 Export Import Transit Total 19 Bilateral and Multilateral Intergovernmental Transport Agreements In total, 104 bilateral and multilateral agreements are concluded: Civil Aviation- 38 Maritime Transport - 22 Road Transport- 31 Railway Transport- 11 Transport Corridor- 2 20 Planned Bilateral Intergovernmental Transport Agreements Work continues on 27 bilateral agreements Civil Aviation- 19 Maritime Transport - 4 Road Transport- 4 21 Thank you for your attention.