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Georgia's Political Economy
Georgia was absorbed into the Russian Empire in the 19th century. Independent for three years (1918-1921) following the Russian revolution, it was forcibly incorporated into the USSR until the Soviet Union dissolved in 1991. Georgia's economy has traditionally revolved around Black Sea tourism; cultivation of citrus fruits, tea, and grapes; mining of manganese and copper; and output of a small industrial sector producing wine, metals, machinery, chemicals, and textiles. The country imports the bulk of its energy needs, including natural gas and oil products. Its only sizable internal energy resource is hydropower. Despite the severe damage the economy has suffered due to civil strife, Georgia has made substantial economic gains since 1995, increasing GDP growth and reducing inflation. The Georgian economy continues to experience large budget deficits. The growing trade deficit, continuing problems with tax evasion and corruption, and political uncertainties cloud the short-term economic picture. GDP per capita in 2000 was estimated at $4,600.6

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