Economy of Abkhazia
The economy of Abkhazia is heavily integrated with the economy of Russia and uses the Russian ruble as its currency. Since the 2008 South Ossetia war and Russia's recognition of Abkhazia's independence, the region has experienced modest economic growth largely supported by Russian financial aid. As of 2021, 43.6% of Abkhazia’s state budget was funded by aid from Russia, while the remainder came from local revenues.
Economic development is hindered by the unresolved state-political status of the republic. One of the main problems is the lack of foreign investment.
History
According to the data from the USSR State Committee for Statistics, in the 1980s, the industrial output of the Abkhaz ASSR accounted for 12% of the total industrial output of the Georgian SSR. The republic had about 500 industrial enterprises, with the main sector of the economy being the food industry, which amounted for 56% of industrial output in 1990.The collapse of the political and economic space of the USSR in 1991 led to a crisis in the industrial sector. As a result of the Georgian-Abkhaz war of 1992-93, the fuel and energy sector, transport infrastructure, construction and agro-industrial complex, communication facilities and utilities, historical and architectural monuments, urban development, educational institutions, and research institutes, as well as individual private houses and apartments, were significantly affected. According to the government of Abkhazia, the damage caused in Abkhazia by the military conflict amounts to about 11.3 billion USD.