Straddling both European and Asian borders, Georgia is one of the most culturally diverse economies in the Caucasus region. Economic growth is driven mainly by tourism, agriculture, mining and exports.
Although now considered one of the stronger economies in the region, Georgia was in 2008 and 2009 affected severely by both the global financial downturn and territorial disputes with Russia, which led to a disastrous five-day war. Tourism, foreign and private investment, and domestic spending plummeted as a result of the subsequent crises.
From 2005 to 2006, Georgia’s gross domestic product grew 9 percent on average; growth peaked in 2007, when GDP increased 12.3 percent. But following the twin crises, GDP growth slid to 2.3 percent in 2008 and dropped further to -3.8 percent in 2009.