As a developing economy, Georgia has made very significant progress in recent years, moving from a near-failed state in 2003 to an increasingly efficient market economy in 2018. In 2007, the World Bank declared Georgia as the first economic reforming country in the world and since then has always ranked the country at the top of its Ease doing Business index. In overall terms, Georgia supports a sustained effort to move closer to the Western way of doing business.
Located between Europe and Asia on a historic "Silk Road", Georgia's economy is highly integrated into international markets. Its stable political environment, liberal and free market economy, highly competitive labour costs, low taxes, developed transport infrastructures, reliable banking sector, are the main factors that have allowed Georgia to open up in a very business-friendly way to the world market.
Georgia has signed Bilateral Investment Treaties (BITs) with 32 countries.
The liberal trade regimes in Georgia offer investors an opportunity not only to access the country's 3.7 million residents, but also the region's markets in general, a direct consequence of the Free Trade Agreement between Georgia and many of the CIS countries such as Ukraine, Belorussia, Moldavia, Kazakhstan, Kirghizistan, Tajikistan, Uzbekistan and Turkmenistan, as well as with its neighbours Turkey, Azerbaijan and Armenia (no customs duties and import duties). Georgia and the European Union also concluded a deep and comprehensive Free Trade Area in 2016 which entered into force in the second quarter of 2018.
Georgia is the leading post-Soviet country (except the Baltic States) in the fight against corruption. The corruption perception index published by Transparency International in 2015 ranked Georgia 48th among 168 countries. Georgia is the least corrupt country in the Black Sea region, including all its immediate neighbours, as well as the EU's neighbouring states. Georgia is also the only country in the Region where the press is considered free.
9th place in Ease Doing Business (World Bank, 2018)
8th place in the Global Economic Freedom survey (Frazer Institute, 2017)
8th place for the lowest taxes in the world (World Economic Forum, 2017)
7th place in contract performance (World Bank, 2018)
According to the Crime Index Rate 2017, Georgia is among the six safest countries out of 117
4th place for ease of starting a business (World Bank, 2018)
4th place in property registration (World Bank, 2018)
2nd place in investor protection (World Bank, 2018)
2nd place in service efficiency (EBRD)
1st place in the issuance of official documents (EBRD)
The Heritage Foundation ranked Georgia 22nd on a list of the freest economies in the world. Georgia has moved up 10 places in the Economic Freedom Index 2017 and currently ranks 13th among 180 countries. Georgia ranks 5th among European countries behind Switzerland, Estonia, Ireland and Great Britain.
Georgia has become over the years a very attractive destination for foreign investment. Foreign Direct Investment in Georgia increased by $403.30 million in the first quarter of 2017. Foreign Direct Investment in Georgia averaged US$ 306.82 million per year between 2005 and 2017.