Its gross domestic product fell sharply following the dissolution of the Soviet Union but recovered in the mid-2000s, growing in double digits thanks to the economic and democratic reforms brought by the peaceful Rose Revolution.

According to Transparency International's 2018 report, Georgia is the least corrupt nation in the Black Sea region, outperforming all of its immediate neighbors, as well as nearby European Union states.

Georgia's modern economy has traditionally revolved around Black Sea tourism, cultivation of citrus fruits, tea and grapes; mining of manganese and copper; and the output of a large industrial sector producing wine, metals, machinery, chemicals, and textiles.

"[31] Economic recovery had been hampered by the separatist disputes in Abkhazia and South Ossetia, resistance to reform on the part of some corrupt and reactionary factions, and the Asian financial crisis of 1997.

Provision of legal and technical advisors was complemented by training opportunities for parliamentarians, law enforcement officials, and economic advisers.

The establishment of an attractive business environment led to a significant inflow of Foreign Direct Investment in the country, facilitating high economic growth rates.

In 2013, Georgia ranked in the top ten countries in the Emerging Market Energy Security Growth Prosperity Index,[33] according to an article published by CISTRAN Finance news.

EBRD analysts believe that substantial international financial support and remittances from workers living abroad will cover the current account deficit in the medium term.

Stable economic development, liberal and free market oriented economic policy, 6 taxes only and reduced tax rates, reduced number of licenses and permissions, dramatically simplified administrative procedures, preferential trade regimes with foreign countries, advantageous geographic location, well-developed, integrated and multimodal transport infrastructure, educated, skilled and competitive workforce presents a solid ground for successful business in Georgia.

[59] As of 2015, in the order of magnitude, Georgia's main exports were: copper ores and concentrates, ferroalloys, hazelnut, medications, nitrogen fertilizers, wine, crude oil, mineral water, non-denatured ethanol and spirits.

[64] Under the Saakashvili administration, Georgia undertook a number of profound institutional reforms aimed at modernizing the economy and improving the business climate.

Implemented institutional reforms created an effective, professional and transparent public sector, motivated to protect the principles of democracy.

As a result of the reform, ”Heritage Foundation” and other analytical centers named Georgian Labour Code as one of the most liberal in the world because it significantly reduced hiring and firing expenses.

Currently, licenses and permits are only used in the production of highly risky goods and services; also usage of natural resources and specific activities.

According to Doing Business 2012 (WB) Georgia is the best performer in the Eastern Europe and Central Asia (ECA) region and places on 4-th position in the world.

The new law provides for 1 month's severance pay at least, replacing complex rules under which required notice periods depended on seniority and the manager had to write long explanations to labor unions and the relevant ministry.

[74] Nearly a half of Georgia's population lives in rural areas, where low-intensity self-sufficient farming provides the principal source of livelihood.

[81] Alexander Khetaguri, the former Georgian Minister of Energy, proposed new hydroelectric projects worth well over 22,000 megawatts of capacity, which would cost over US$40 billion and would be privately funded.

[citation needed] In addition to state-owned Inguri, which has an installed capacity of 1,300 megawatts, Georgia's hydroelectric infrastructure consists of many small private plants.

[87] Georgia's reliance on hydropower leaves the country vulnerable to climatic fluctuations, which requires imports to meet seasonal shortages, but also opens the possibility of exports during wetter conditions.

In response to mounting pressures, the Georgian government initiated a series of legislative reforms in 1998 and 1999 to begin to develop the power sector and electricity markets.

In addition to providing government subsidies, the GNERC was able to increase the prices of electricity and natural gas in Georgia to buffer the costs of recovery from the state's reform process.

Tensions ran high, however, as the Inguri hydropower plant provides nearly 40 to 50 percent of the country's electricity and is located at the administrative border of the secessionist Abkhazia region.

In recent years, however, Georgia has been able to eliminate its dependency on imports from Russia, thanks to increased hydroelectricity production, and the availability of natural gas sources from Azerbaijan.

[94] Georgian agricultural production is beginning to recover following the devastation caused by the civil unrest and the necessary restructuring following the breakup of the Soviet Union.

Over 450 species of local vine are bred in Georgia, and the country is considered as one of the oldest places of producing top-quality wines in the world.

This, however, changed in 2006, when Russia banned imports of wine and mineral water from Georgia, preceded by statements of Georgian governmental officials about low quality requirements of the Russian market.

Since it is situated right in between of Europe and Asia, the country is supposed to become a busy transitional hub of a modern Silk Road in the near future.

[110] Re-exportation of vehicles which is one of the income sources for Georgia has lowered much during 2014–2015 stagnation, most noticeably to Azerbaijan: it became 5.1 times less (on 10 337 cars) comparing to the previous year.

For instance, banks play a limited role in financing the real economy and in investing in activities that are required to stabilize the country's persistent trade.