Georgia’s agriculture faces actual challenges

Abstract

Georgia’s agriculture is gradually emerging from the severe, protracted economic crisis that has plagued it since the 1990s. It is true that the volume of output and value added in this sector has increased in recent years and the volume of the latter amounted to 3112.2 million GEL in 2019 (7.2% of GDP), however, if we compare it with other sectors and fields of the economy, the situation is not so good. In recent years, financial support from the state has clearly affected the agricultural sector, although the economic growth of the sector is still quite weakly correlated with the growth of state subsidies. During this period, the whole economy grew 2.6 times faster and grew by 33.2% compared to 2012. Agriculture - according to the increase in the last 7 years (2013-2019) (which was observed only for 2 years (2013 and 2018) - was in the penultimate place, however, there was a decrease in value added in the sector and due to it the volume decreased by 11.2% in 2017. Despite some growth, the concept of “sustainable development” is still the least appropriate for Georgia’s agriculture. Accordingly, the development of agriculture in Georgia requires relatively more state attention and relatively new methods and forms of support, management and organization.