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 have reached record-high levels in 2019-2024 and stood at 7.2% of GDP in 2024, with public investment set to continue supporting growth in the medium run.
• Following a 9.4% expansion in 2024, the Georgian economy sustained its growth momentum with preliminary growth of 7.9% y-o-y in 8M25.

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

• After two years of below target levels, headline inflation has risen in recent months, reaching 4.8% in September 2025, exceeding the target since March 2025. The National Bank of Georgia has kept the monetary policy rate steady at 8.0% since May 2024.

Top performer in WB Doing Business

• 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 36% of GDP at the end of 2024, lowest since 2014, as economy has rebounded and GEL remained relatively stable, while the fiscal deficit reached 2.4% of GDP in 2024.
• 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$ 2.8 billion (+7.8% y-o-y) in 9M25, 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.
• The tourism sector continues to grow as income from international travel reached US$ 3.6 billion in 9M25 (up 5.1% y-o-y), representing 141% of 9M19 levels. However, the number of international visitors shows only a partial recovery in 9M25, standing at 89% against of 9M19, pointing that further growth potential remains.

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

• FDI stood at US$ 1.6 billion (4.6% of GDP) in 2024, following record highs in 2022 and 2023 (US$ 2.2 billion and US$ 1.9 billion, respectively). FDI has averaged 8.0% of GDP across the last 10 years.
• S&P affirmed Georgia’s sovereign rating at BB with a Stable outlook in August 2025, citing Georgia benefits from strong macroeconomic policy framework while questioning political/ geopolitical uncertainty. In contrast, Moody’s and Fitch affirmed their ratings but revised the outlook from Stable to Negative, citing risks related to institutional stability and external vulnerabilities.

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. 
• On March 2023 Georgia submitted application to join the EU, a move that was originally scheduled for 2024. 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 2024, Russia accounted for 10% of Georgia’s exports and 11% of imports. While exports and imports to/from the EU accounted 9% and 27% accordingly.