Investor Presentaiton
Georgia's key economic drivers
Top performer globally in WB Doing Business over the past 12 years
Liberal economic
policy
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Liberty Act (effective January 2014) ensures a credible fiscal and monetary framework:
Fiscal deficit/GDP capped at 3%; Public debt/GDP capped at 60%;
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Business friendly environment and low tax regime (attested by favourable international rankings);
GEORGIA
CAPITAL
Regional logistics
A natural transport and logistics hub, connecting land-locked energy rich countries in the east and European markets in the west
and tourism hub
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Strong FDI
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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.
Tourism inflows stood at US$ 3.3 billion in 2019 and international travelers reached 9.4 million in 2019 (up 7.8% y-o-y), out of which tourist arrivals were up 6.8% y-o-y to 5.1 million.
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 have boosted productivity and accelerated growth
" FDI stood at US$ 1.3 billion (7.2% of GDP) in 2019.
Support from
international
community
Electricity transit
hub potential
Political
environment
stabilised
FDI averaged 8.5% of GDP in 2010-2019.
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.
Developed, stable and competitively priced energy sector
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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.
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. However, they have been banned again since July 2019 following the decision from Russia.
Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia.
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In 2019, Russia accounted for 13.2% of Georgia's exports and 10.8% of imports.
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