Investment Opportunity

Leading economy in the region on the back of wide sector activities

Diversified non-commodity reliant economy with consistently high GDP growth across the last decade.

Investment-led GDP growth 

• Development of large public infrastructure programmes backed by multilateral international funding driving potential GDP growth.
• Infrastructure expenditures averaged 6.8% of GDP in 2019-2025, with public investment set to continue supporting growth in the medium run.
• Following a 7.5% expansion in 2025, the Georgian economy sustained its growth momentum with preliminary growth of 7.9% y-o-y in 1H26.

Low inflation with 3% target set from 2018 by National Bank of Georgia

Significant deleveraging in fiscal sector

• Liberty Act (effective January 2014) ensures a credible fiscal framework. Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%.
• The general government debt has fallen to 34% of GDP at the end of 2025, lowest since 2014, driven by sustained economic growth and a relatively stable GEL, while the overall deficit narrowed significantly to 1.2% of GDP in 2025.
• Business friendly environment and low tax regime (reflected in favourable international rankings).

A natural transport and logistics hub, connecting land-locked energy rich countries in the east and European markets in the west 

• Access to a market of 2.8 billion customers without customs duties: Free trade agreements with EU, China, Hong Kong, CIS countries, Turkey, UAE and EFTA and GSP with USA, Canada and Japan; additional FTAs under negotiation or consideration, including Israel, South Korea and India. Export amounted to US$ 7.3 billion (+11.1% y-o-y) in 2025, followed by a robust 20.0% surge in the first half of 2026. Moreover, transportation service exports increased on average 21.7% during 2022-2025, due to the increased importance of the Middle Corridor.
• Tourism continues to be a significant source of FX inflows and an important contributor to the current account balance. In 1H26, the sector recorded a modest decline, with international visitors decreasing by 2.7% y-o-y to 2.7 million and tourism revenues declining by 2.0% y-o-y to US$ 1.9 billion. The slowdown primarily reflected weaker inflows from the Middle East amid heightened geopolitical tensions, partly offset by stronger tourism revenues from the EU.

An influx of foreign investors on the back of the economic reforms have boosted productivity and accelerated growth

• Foreign direct investment (FDI) increased by 7.6% y-o-y to US$ 1.7 billion in 2025 (4.4% of GDP). In 1Q26, FDI inflows continued to strengthen, increasing by 48% y-o-y to US$ 271 million. FDI has averaged 7.3% of GDP over the last 10 years.
• In May 2026, Fitch affirmed Georgia’s ‘BB’ sovereign credit rating with a stable outlook, highlighting strong economic growth, a credible macro-fiscal framework, moderate public debt, and a sound banking sector. In June 2026, Moody’s also affirmed Georgia’s Ba2 rating and revised the outlook from Negative to Stable. 

Georgia was granted the EU candidate status in December 2023

• Georgia and the EU signed an Association Agreement and DCFTA in June 2014. Visa-free travel to the EU is another major success in Georgian foreign policy. Georgian passport holders were granted free visa entrance to the EU countries from 28 March 2017. 
• Georgia submitted application to join the EU, and on 14 December 2023, the European Council granted the candidate status to Georgia.

Developed, stable and competitively priced energy sector

• Black Sea Submarine Cable (BSSC) Project, which intends to link Caucasus electricity to EU via an underwater high-voltage transmission network, will significantly increase Georgia’s potential to become electricity transit hub.
• Georgia imports natural gas mainly from Azerbaijan.
• Significantly boosted transmission capacity in recent years, a new 400 kV line to Turkey and 500 kV line to Azerbaijan built, other transmission lines to Armenia and Russia upgraded.

• Georgia underscored its commitment to European values by securing a democratic transfer of political power in successive parliamentary, presidential, and local elections and by signing an Association Agreement and free trade agreement with the EU. 
• New constitution amendments passed in 2013 to enhance governing responsibility of Parliament and reduce the powers of the Presidency.
• Member of WTO since 2000, allowed Russia’s access to WTO; In 2013 trade restored with Russia. 
• In 2025, Russia accounted for 10% of Georgia’s exports and 10% of its imports, while exports to and imports from the EU accounted for 12% and 25%, respectively.