Investor Presentaiton
Georgia's key Economic Drivers
Liberal economic
policy
Top performer globally in WB Doing Business over the past 12 years
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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%
GEORGIA
CAPITAL
Regional logistics
and tourism hub
Strong FDI
Support from
international
community
Electricity transit
hub potential
Political
environment
stabilised
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
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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 18.2% of GDP in 2017 and arrivals reached 7.6mln visitors in 2017 (up 18.8% y-o-y), out of which tourist arrivals were up 27.9%
y-o-y to 3.5mln 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 have boosted productivity and accelerated growth
" FDI stood at US$ 1.9bln (12.3% of GDP) in 2017, up 16.2% y-o-y
FDI averaged 10.0% of GDP in 2007-2017
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; 145 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
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Direct flights between the two countries resumed in January 2010
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Member of WTO since 2000, allowed Russia's access to WTO; In 2013 trade restored with Russia
In 2017, Russia accounted for 14.5% of Georgia's exports and 9.9% of imports; just 3.5% of cumulative FDI over 2003-2017
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