Why We Invest in Georgia


Georgia’s Economic Overview

Diversified Resilient Economy

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 with above 5% growth potential expected upon the execution of the institutional 4-Pillar reform initiative

  • Comprehensive 4-Pillars of reform initiative focused on structural reforms, promotion of transit and tourist hub, open governance and education
  • Development of large public infrastructure programs backed by multilateral international funding

Historically low inflation with 3% target set for 2018-2020 by NBG

Liberal economic policy

Top performer globally in WB Doing Business over the past 12 years

  • Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework:
    • Public expenditure/GDP capped at 30%; Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%
  • Business friendly environment and low tax regime (attested by favourable international rankings)

Regional logistics and tourism hub

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 2.8bn customers without customs duties: Free trade agreements with EU, China, CIS and Turkey and GSP with USA, Canada, Japan, Norway and Switzerland; FTA with Hong Kong expected to be signed shortly; FTA with India under consideration
  • Tourism revenues on the rise: tourism inflows stood at 18.1% of GDP in 2017 and arrivals reached 8.7mln visitors in 2018 (up 9.8% y-o-y), out of which tourist arrivals were up 17% y-o-y to 4.8mln visitors.
  • Regional energy transit corridor accounting for 1.6% of the world’s oil and gas transit volumes

Strong FDI

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

  • FDI stood at US$ 1.9bln (12.5% of GDP) in 2017, up 21% y-o-y
  • FDI averaged 10.0% of GDP in 2007-2017

Support from international community

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
  • Discussions commenced with the USA to drive inward investments and exports
  • Strong political support from NATO, EU, US, UN and member of WTO since 2000; Substantial support from DFIs, the US and EU

Electricity transit hub potential

Developed, stable and competitively priced energy sector

  • Only 20% of hydropower capacity utilized; 155 renewable (HPPs/WPPs/SPPs) energy  power plants are in various stages of construction or development
  • 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

Political environment stabilised

  • 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
  • Continued economic relationship with Russia, although economic dependence is relatively low
  • Russia began issuing visas to Georgians in March 2009; Georgia abolished visa requirements for Russians – Russia announced the easing of visa procedures for Georgians citizens effective December 23, 2015
  • Direct flights between the two countries resumed in January 2010
  • Member of WTO since 2000, allowed Russia’s access to WTO; In 2013 trade restored with Russia
  • In 2018, Russia accounted for 13% of Georgia’s exports and 10.2% of imports.