Comparative analysis of some economic indicators of post-soviet countries in the South Caucasus

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Ivane Javakhishvili Tbilisi State University Press
The paper deals with the comparative analysis of some economic indicators of the post-Soviet countries of South Caucasus, Georgia, Azerbaijan and Armenia. According to the conclusions obtained from the survey: First, in 1990, the volume of GDP per capita was the Azerbaijan, which did not greatly surpass Georgia, the Armenian data was more modest. In 2017 Azerbaijan increased this index to ten times, Georgia doubled it, and Armenia was able to make it even better to five times; Secondly, the rate of growth of economic development of countries is radically different. The average annual growth rate of economic growth was 35% in Azerbaijan in 2008, following sharp decline in energy resources and low economic reforms. The economic growth rates of Armenia were reflected in two-digit figures, which was greatly influenced by the CIS, including Russia’s economic ties. Low, not efficient growth rates are observed in Georgia, where the scale of the economy has decreased by almost 45% – in 1994, the maximum growth was recorded in 1996 – 11.2% and 2007 – 12.3%; Third, the per capita GDP was lower in all three countries in the world (10715 $, 2017). Georgia was in the first place with the indicator of 1990 year. In 2014, Azerbaijan has overtaken him twice in 2014. In 2017, the number of GDPs in Azerbaijan decreased by 2 times in 2010 compared to 2014. This figure was maximum: in 2014 in Azerbaijan – $ 7891, in Armenia in 2008 – 4010 in 2014 and in 2014 – 4430 $. Azerbaijan’s population grew at a rate of 33.0% per capita in 2006, the highest drop – in -23.8% in 1992. Similar figures in Armenia were the following: 14.7% (2003) and -13.6 (2009). Thus, the world economic crisis touched the most severe (2009) in Armenia and Georgia; The fourth, the different picture was identified according to the purchasing capacity based on GDP: In 2017, compared to 1990, indicators of Azerbaijan and Georgia have less increased than in Armenia. One of the reasons for this is likely to be a relatively low increase in prices; The fifth, GDP per capita, according to PPP (current international $) Georgia and Armenia are significalty behind the world average indicator (16941 $), indicator of Azerbaijan (17400 $) is higher than that; Sixth, the post-Soviet economy is characterized by a significant increase in direct foreign investments in energy-rich countries, for example in Azerbaijan. This country dominates not only by attracting direct foreign investment but also becoming an active exporting country (including Georgia). Attracting more foreign direct investment is not always a higher share (%) of the country’s WTO – it was revealed that this indicator is higher in Georgia in 20132017; The seventh, in transition countries, the low income of the population is low due to high inflation. In 2016-2017 Due to the high inflation in Azerbaijan, consumer prices have increased in comparison to Armenia and Georgia; The eighth, economic development stimulates creation of new jobs and reduces outflow of the country’s work-force. It is not accidental that unemployment rate in Azerbaijan is within the EU average, which is down 11.6% in Georgia and in Armenia it exceeds 18%; The ninth, migration is high in Armenia and Georgia. According to the net migration, Georgia and Armenia look unfavorable, which we can not say about Azerbaijan. Based on the World Bank data, calculations show that in Azerbaijan in 2017, the population was 138%, in Armenia 82.8% and in Georgia 77.4%.
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Economic Indicators; GDP; GDP per capital; PPP
Economics and Business, №1, 2019, pp. 29-38