Why We Invest in Georgia

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 9.7% expansion in 2024, the Georgian economy sustained its growth momentum with preliminary growth of 7.5% y-o-y in 2025.

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

• After two years of below target levels, price pressures re-emerged in 2025, mainly driven by rising food prices, pushing inflation above the target from March onward, with the annual average inflation standing at 3.9% in 2025. Core inflation, which excludes the most volatile items such as food, energy and regulated tariffs, averaged 2.4%, indicating relatively stable underlying price dynamics. The National Bank of Georgia has kept the monetary policy rate steady at 8.0% since May 2024.

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 (attested by 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 and Turkey and GSP with USA, Canada, Japan, Norway and Switzerland; FTA with Israel and India under consideration. Transit trade amounted to US$ 3.9 billion (+10.0% y-o-y) in 2025, more than tripling compared to 9M21 level. Moreover, transportation service exports increased significantly on average 28.4% during 2022-2024, 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 2025, the number of international visitors grew by 6.2% y-o-y to 6.9 million, while tourism revenues reached US$ 4.7 billion, up 6.0% y-o-y, with significant contribution from Israel (up 34.3% y-o-y) and the EU (up 15.6% y-o-y). Furthermore, tourist arrivals from Asian markets saw substantial gains, highlighted by growth from both China and India.

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

• Following strong inflows in 2022-2023 and a decline in 2024, foreign direct investment (FDI) reached US$ 1.3 billion (4.7% of GDP) in 9M25, marking an 11.7% y-o-y increase. FDI has averaged 8.0% of GDP over the last 10 years.
• Fitch revised Georgia’s sovereign credit rating outlook from negative back to stable in November 2025, affirming the “BB” rating and highlighting a marked recovery in external liquidity, including record-high foreign reserves and rebounding FDI inflows in 2025.

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

• New Black Sea Submarine Cable Project to connect Caucasus electricity to EU 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.
• Additional 2,000 MW transmission capacity development in the pipeline, facilitating cross-border electricity trade and energy swaps to Eastern Europe.

• 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 imports. While exports and imports to/from the EU accounted 12% and 25% accordingly.