Tracking Georgia's Economic Recovery
GEORGIA'S KEY ECONOMIC DRIVERS
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Liberal
economic policy
Regional
logistics and
tourism hub
Strong FDI
Support from
international
community
Electricity
transit hub
potential
Political
environment
Top performer globally in WB Doing Business over the past 12 years
Liberty Act ensures a credible fiscal and monetary framework
Fiscal deficit/GDP capped at 3%; Government debt/GDP capped at 60%
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 2.8bn customers without customs duties: Free trade agreements with EU, China, CIS, Turkey, Hong Kong and with EFTA countries. The GSP
with USA, Canada and Japan
Tourism inflows stood at 18.4% of GDP in 2019 and total international arrivals reached 9.4mln visitors in 2019 (up 7.8% y-o-y), out of which tourist arrivals were up
6.8% y-o-y to 5.1mln visitors
Regional energy transit corridor accounting for 1.6% of the world's oil and gas transit volumes
An influx of foreign investors on the back of the economic reforms
FDI stood at US$ 1.3bln (7.4% of GDP) in 2019
FDI averaged 8.7% of GDP in 2010-2019
Georgia and the EU signed an Association Agreement and DCFTA in June 2014
Visa-free travel to the EU - another major success in Georgian foreign policy. Georgians were granted free 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
Developed, stable and competitively priced energy sector
Only 25% of hydropower capacity utilized; 150 renewable (HPPS/WPPS/SPPS) energypower plants are in various stages of construction or development
Georgia imports natural gas mainly from Azerbaijan
Significantly boosted transmission capacity with 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
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
Despite resumed economic ties, exposure to Russia remains moderate. In 9M20, Russia accounted for 12.8% of Georgia's exports and 10.9% of imports; just 3.7% of
cumulative FDI over 2003-1H20View entire presentation