Dependency Status: part of the Kingdom of Denmark; self-governing overseas administrative division of Denmark since 1979

Government Type: republic

Capital: T'bilisi Geographic Coordinates: 41 43 N, 44 47 E

Independence: 9 April 1991 (from the Soviet Union)

National holiday: Independence Day, 26 May (1918); note - 26 May 1918 was the date of independence from Soviet Russia, 9 April 1991 was the date of independence from the Soviet Union

Constitution: adopted 24 August 1995

Legal system: based on civil law system; accepts compulsory ICJ jurisdiction

Suffrage: 18 years of age; universal

Economy Overview: Georgia's economy sustained GDP growth of more than 10% in 2006-07, based on strong inflows of foreign investment and robust government spending. However, GDP growth slowed in 2008 following the August 2008 conflict with Russia, and turned negative in 2009 as foreign direct investment and workers' remittances declined in the wake of the global financial crisis, but rebounded in 2010. Georgia's main economic activities include the cultivation of agricultural products such as grapes, citrus fruits, and hazelnuts; mining of manganese and copper; and output of a small industrial sector producing alcoholic and nonalcoholic beverages, metals, machinery, aircraft and chemicals. Areas of recent improvement include growth in the construction, banking services, and mining sectors, but reduced availability of external investment and the slowing regional economy are emerging risks. The country imports nearly all its needed supplies of natural gas and oil products. It has sizeable hydropower capacity, a growing component of its energy supplies. Georgia has overcome the chronic energy shortages and gas supply interruptions of the past by renovating hydropower plants and by increasingly relying on natural gas imports from Azerbaijan instead of from Russia. The construction on the Baku-T'bilisi-Ceyhan oil pipeline, the Baku-T'bilisi-Erzerum gas pipeline, and the Kars-Akhalkalaki Railroad are part of a strategy to capitalize on Georgia's strategic location between Europe and Asia and develop its role as a transit point for gas, oil and other goods. Georgia has historically suffered from a chronic failure to collect tax revenues; however, the government, since coming to power in 2004, has simplified the tax code, improved tax administration, increased tax enforcement, and cracked down on petty corruption. However, the economic downturn of 2008-09 eroded the tax base and led to a decline in the budget surplus and an increase in public borrowing needs. The country is pinning its hopes for renewed growth on a determined effort to continue to liberalize the economy by reducing regulation, taxes, and corruption in order to attract foreign investment, but the economy faces a more difficult investment climate both domestically and internationally.

Disputes - international: Russia and Georgia agree on delimiting 80% of their common border, leaving certain small, strategic segments and the maritime boundary unresolved; OSCE observers monitor volatile areas such as the Pankisi Gorge in the Akhmeti region and the Argun Gorge in Abkhazia; UN Observer Mission in Georgia has maintained a peacekeeping force in Georgia since 1993; Meshkheti Turks scattered throughout the former Soviet Union seek to return to Georgia; boundary with Armenia remains undemarcated; ethnic Armenian groups in Javakheti region of Georgia seek greater autonomy from the Georgian government; Azerbaijan and Georgia continue to discuss the alignment of their boundary at certain crossing areas