Georgia, sometimes referred to as the Empire State of the South, claims a longstanding pro-business reputation, has achieved strong economic growth, and is now promoting itself as a global business center.
Georgia, founded in 1732, is one of the United States’ original 13 states and was named in honor of England's King George II. It is the largest state east of the Mississippi, and its size and its thriving industries have given it one of its nicknames - the Empire State of the South.
With almost 8.7 million inhabitants, Georgia is the 9th most populous state in the U.S. Approximately half of the population lives in or around Atlanta, which ranks among the largest urban areas in the United States.
Atlanta, which became Georgia's capital in 1868, is the state’s largest city. Growth in the white-collar service economy, led by the expansion of corporate headquarters and services such as legal advice, computing, and advertising, accounts for a large part of Atlanta’s recent development.
Georgia’s second largest city is Columbus, which developed initially as an industrial center. Fort Benning, a large United States Army infantry base, is near the city. Savannah was the largest city in Georgia until the rise of Atlanta in the 20th century. A bustling industrial center and seaport, Savannah is the oldest city in the state and has retained much of the aura of its gracious past.
The current governor of Georgia, elected in 2001, is Sonny Perdue, a Republican. Georgia is represented by Senator Saxby Chambliss, a Republican and former governor of Georgia, and Senator Zell Miller, a Democrat. In the House of Representatives, Georgia has 13 seats, held by eight Republicans and five Democrats.
Economic Profile
Georgia has expanded rapidly. In 2001, its Gross State Product (GSP), which reached almost US$300 billion, was the tenth highest in the United States, while in 2003, per capita income in Georgia ranked 14th at US$29,442, representing 6.9% below the national average.
Although the trade and service sectors supply the majority of jobs in Georgia, manufacturing and agriculture remain important to the state's economy. The workforce in Georgia reached 4.4 million in May 2004: 34% in the services sector, 25% in the wholesale or retail trade, 15% in manufacturing, 7% in transportation or public utilities, and 5% in construction.
· Manufacturing. The production of textiles and textile products, including apparel, is Georgia’s largest manufacturing activity. Food processing is also a major contributor to the Georgia economy. The main foodstuffs processed are beverages, frozen shrimp, oven-ready broilers, and canned vegetables and fruits. Automobile manufacturing is also important around Atlanta. The most valuable minerals produced are clays, stone, kaolin, iron ore, sand, and gravel. Georgia is famous for its fine marble.
· Hi-Tech Sector. Three service industries make up more than 70% of Georgia’s high-tech sector: telecommunications services, computer and data processing services, and engineering services. High-technology firms employed nearly 7% of Georgia’s workforce in 2002, according to the Georgia Department of Labor. Eight in ten of these employees worked in high-tech service firms, while 20% worked in high-tech manufacturing.
· Tourism. Revenues from tourism reached US$25 billion in 2003, according to the Travel Industry Association of America. Georgia is now the seventh most-visited state in the nation and tourism generates over two million jobs and more than US$70 million in state tax revenue. With its moderate winter climate and its Southern charm and beauty, the state is a popular vacation area. The Sea Islands are especially noted for their scenery and resorts. Warm Springs, established with the help of President Franklin D. Roosevelt for the treatment of poliomyelitis, is now a historical landmark.
· Bio-science Technology. The bio-science industry in Georgia has grown steadily for the past five years. The state is home to more than 120 bio-science research and development companies, eight research universities, and a broad spectrum of resources for clinical research. To date, the state's life sciences industry employs more than 13,000 Georgians. Georgia now has the country’s eighth largest life sciences community, according to the Ernst & Young Global Biotechnology Report.
Trade with Chile
Chile was Georgia’s 30th largest export market in 2003, with sales reaching almost US$89 million, up by 15.5% over 2002. Chile is Georgia’s second largest export market in South America, after Brazil, and its main imports from the state are chemicals, computer and electronic products, transportation equipment, and food products. Chile’s exports to Georgia totaled US$32 million in 2003, led by fish products.
In the first quarter of this year, following the implementation of the Chile-U.S. FTA, Georgia’s exports to Chile rose 35.9% year-on-year, while Chile’s exports to Georgia climbed by 107.3%
Foreign Investment
Foreign direct investment in Georgia reached US$17.9 billion in 2002, coming principally from Japan (US$4.3 billion), Canada (US$2.5 billion), the UK (US$2.2 billion), the Netherlands (US$1.6 billion), and Germany (US$1.2 billion). More than 1,500 foreign-owned facilities from almost 40 countries employ some 124,000 Georgians. In addition, more than 50 countries have general and honorary consulates, trade, tourist and cultural offices, and bi-national chambers of commerce in Georgia.