LOCAL ECONOMIC DEVELOPMENT PLAN FOR TBILISI ... - LED

1996 1997 1998 1999 2000 2001
Share of the non-observed output in the total output of the
section, percent
Industry 46 43 40 39 41 41
Agriculture, forestry, fishing 9 9 9 9 11 9
Construction 18 35 33 33 45 52
Transport 38 35 36 37 36 37
Communications 23 23 19 24 21 25
Trade 66 60 57 56 56 57
Hotels and Restaurants 62 61 60 64 69 75
Other 24 27 31 33 41 38
Total economy 26.9 27.4 28.3 29.2 33.2 33.7
Industries where the largest share of non-observed output to hotels and restaurants,
construction, trade and industry was assessed during the survey.
As in many post–communist economies, non recorded operations and the informal
economy still remain among the major impediments to the economy. However,
successful anti-corruption policies, together with increased institutional efficiency, have
resulted in a clear tendency towards the legalization of the informal economy.
In % 2000 2001 2002 2003
Non recorded 32.6 32.9 33.6 31.6
Although the most recent data was not available it should be pointed out that the tax
collection has dramatically improved.
Government reforms after “Rose Revolution” changed the situation by the introduction of
new simplified business and tax regulations. As a result many existing non-observed
companies registered their activities and started to pay taxes.