World Bank2013-10-012013-10-012013-07https://hdl.handle.net/10986/15983Sustaining rapid economic growth for reduced poverty and shared prosperity over the next decade and beyond in Georgia is an important goal and a key challenge for the authorities. While the record of growth over the last decade has been strong, the forces that drove this growth are unlikely to be sustained in the coming years. Sustaining strong growth in Georgia going forward will require new policies that help support both high investment financed increasingly from domestic sources as well as sustained rapid productivity growth in the tradable sectors. Ensuring a more sustainable source of financing for investment and accumulation will require raising low rates of national savings in Georgia. Sustaining rapid productivity growth of tradables will require reforms to address firm level constraints to improved allocative efficiency and productivity over the firm lifecycle. Supporting productivity growth will also require improved skills and deployment of workers that will also support employment generation and more inclusive growth going forward. Expanding productivity and growth of exports will require ensuring price competitiveness, enhancing market access, and improving logistics infrastructure. This report is structured in five chapters. Chapter one looks at the sources and prospects for growth, the record on national savings, and the prospects for raising savings. Chapter two is a diagnostic of the dynamics of firm-level productivity growth and the policies that may be constraining improved allocative efficiency and lifecycle productivity. Chapter three looks at employment and skills to assess whether Georgia's labor resources are adequately deployed. Chapter four is a diagnostic of exports and international trade and the policies that may be holding back growth and productivity of the export and tradable sectors in particular. Two appendices on the apparel and wine industries provide additional insight into policies to support export growth.en-USCC BY 3.0 IGOABSOLUTE POVERTYACCOUNTING FRAMEWORKAGGREGATE DEMANDAGGREGATE INCOMEAGRICULTUREANNUAL GROWTHAVAILABILITY OF CREDITAVERAGE LEVELBANK ENTRYBANK LOANSBANK SPREADSBANKING SECTORBENCHMARKBORROWING COSTSBUSINESS DEVELOPMENTBUSINESS ENVIRONMENTCAPITA INCOMESCAPITAL ACCUMULATIONCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INFLOWSCAPITAL MARKETSCAPITAL MARKETS DEVELOPMENTCAPITAL STOCKCOLLECTIVE INVESTMENTCOMMERCIAL BANKCOMMERCIAL BANK LOANSCOMMODITYCOMPARATOR COUNTRIESCOMPETITIVENESSCONSUMER DURABLECONSUMPTION GROWTHCONSUMPTION LEVELSCORPORATE PROFITSCORPORATE SAVINGCORPORATE SAVINGSCOUNTRY VARIATIONCREDIT AVAILABILITYCREDIT CARDCREDIT CARD DEBTCREDIT CARDSCURRENCYCURRENT ACCOUNT BALANCECURRENT ACCOUNT DEFICITDATA AVAILABILITYDEBTDEBTSDEMOGRAPHICDEPOSITDEPOSIT RATESDESCRIPTIVE STATISTICSDIVIDENDDIVIDENDSDOMESTIC CREDITDOMESTIC CREDIT GROWTHDOMESTIC FINANCIAL MARKETSDOMESTIC MARKETDOMESTIC SAVINGSDURABLESECONOMIC AGENTSECONOMIC CRISISECONOMIC DOWNTURNECONOMIC GROWTHEMERGING ECONOMIESEMERGING MARKETSENTERPRISE PERFORMANCEEQUIPMENTEXCHANGE RATEEXPENDITUREEXPENDITURESEXPORT GROWTHEXPORT MARKETSEXPORT SECTORSEXPORT SHAREEXPORTSEXTERNAL DEBTEXTERNAL FINANCINGEXTERNAL IMBALANCESEXTREME POVERTYFACTORS OF PRODUCTIONFINANCIAL CONSTRAINTSFINANCIAL CRISISFINANCIAL INSTRUMENTSFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SERVICESFINANCIAL STABILITYFIRM GROWTHFISCAL CONSOLIDATIONFISCAL DEFICITFISCAL POLICIESFOREIGN CURRENCYFOREIGN DIRECT INVESTMENTFREE TRADEFREE TRADE AGREEMENTFUTURE GROWTHGDPGDP PER CAPITAGINI COEFFICIENTGLOBAL ECONOMYGROSS DOMESTIC PRODUCTGROSS NATIONAL SAVINGSGROWTH ACCOUNTINGGROWTH IMPACTGROWTH INVESTMENTGROWTH MODELGROWTH PATHGROWTH PROSPECTSGROWTH RATEGROWTH RATESHOLDINGHOUSEHOLD INCOMEHOUSEHOLD SAVINGHOUSEHOLD SAVING RATEHOUSEHOLD SAVING RATESHOUSEHOLD SAVINGSHOUSEHOLD SURVEYSHUMAN CAPITALINCOMEINCOME GROWTHINCOME LEVELINCOME LEVELSINCOMESINDUSTRIAL COUNTRIESINFLATIONARY EXPECTATIONSINSTRUMENTINTERNATIONAL DEVELOPMENTINTERNATIONAL MARKETSINTERNATIONAL STANDARDSINTERNATIONAL TRADEINVESTMENT INSTRUMENTSINVESTMENT RATEINVESTMENT RATESJOB CREATIONLABOR FORCELABOR FORCE GROWTHLABOR MARKETLABOR SUPPLYLIQUIDITYLIVING STANDARDSLOANLOCAL CURRENCYLONG RUNLONG TERM SAVINGLONG TERM SAVINGSMACROECONOMIC STABILITYMARKET ACCESSMARKET DEVELOPMENTSMARKET EFFICIENCYMARKET REFORMSMARKET SHARESMARKET STABILITYMEDIUM TERMMIDDLE INCOME COUNTRIESMONETARY FUNDMORTGAGE LOANSMORTGAGESNATIONAL ACCOUNTSNATIONAL BANKNATIONAL SAVINGNATURAL RESOURCESNET EXPORTSNON-PERFORMING LOANSNPLOPEN ECONOMYOUTPUTOUTPUT RATIOOUTPUTSOVERVALUATIONPENSIONPENSION FUNDSPENSION REFORMPOLICY AREASPOLICY MAKERSPOVERTY LINEPOVERTY REDUCTIONPRIVATE DEBTPRIVATE SAVINGPRIVATE SAVINGSPRIVATIZATIONPRO-POORPRODUCTION FUNCTIONPRODUCTIVITY GROWTHPUBLIC DEBTPUBLIC FINANCESPUBLIC INVESTMENTSPUBLIC SAVINGPUBLIC SAVINGSPUBLIC-PRIVATE PARTNERSHIPSRAPID ECONOMIC GROWTHRAPID GROWTHRATE OF INVESTMENTREAL ESTATEREAL EXCHANGE RATEREAL GDPREDUCED FORM EQUATIONREDUCED POVERTYREDUCING POVERTYREGIME CHANGERESERVESRESIDENTIAL MORTGAGERETIREMENT SAVINGRETIREMENT SAVINGSRETURNSRICH COUNTRIESRURAL AREASSAVINGSSECTOR REFORMSSECTORAL COMPOSITIONSOCIAL PROTECTIONSUSTAINABLE GROWTHTARIFF BARRIERSTAXTAX RATESTAX REVENUESTFPTOTAL CONSUMPTIONTOTAL FACTOR PRODUCTIVITYTOTAL FACTOR PRODUCTIVITY GROWTHTRADABLE SECTORSTRANSITION ECONOMIESUNEMPLOYMENTUNEMPLOYMENT RATEVALUE ADDEDWorld Bank10.1596/15983