During the past decade, Georgia has a proven track record of enacting economic reforms and boosting individuals’ living standards. While considering various destinations to set up your business, here are some arguments why you should lead to Georgia:
As a leading economy throughout the region, Georgia has a diversified GDP structure. Top industries cover the following areas: Agriculture – citrus fruits, edible berries, tea, grapes, and hazelnuts; Industrial Manufacturing, such as aircraft engineering, electric motors, and other machinery; Beverages – mineral waters, wine, and other spirits; Wood Products – various types of furniture; Clothing – textile and shoe production; Manganese and Copper Mining; Crypto Currencies Mining, etc.
Liberal Economic Policies
Georgia ranks as the 12th freest economy in the world (7th in Europe) by the Heritage Foundation’s Economic Freedom Index, which places it through ‘Mostly Free’ Economies of the world. This year, Georgia’s economy experienced only a minor setback in its protracted climb to the top of the mainly free category. Long-term changes to minimize corruption, reduce regulation, and simplify taxation have resulted in increased economic freedom in all areas. Here is the breakdown of the assessment of four main categories and twelve components of the Economic Freedom Index:
Source: Heritage Foundation
According to WB Georgia is a top 10 performer in Doing Business. The breakdown of the widely accepted index reveals Georgia as the second easiest country to start your business, 5th for registering property, 7th for protecting minority investors, 12th for enforcing contracts, 14th for paying taxes, and so on.
Source: World Bank
Economic Liberty Act provides fiscal guarantees for the private sector, which means that no tax will ever be raised without a referendum.
Back in 2014, Georgia and the EU concluded an Association Agreement, making the country a Deep and Comprehensive Free Trade Area (DCFTA) for the EU. The country also reaps the benefits of the Generalized System of Preferences (GSP), tariff reductions on a wide range of products that could be sold to the United States, Canada, and Japan. On top of that, Georgia has a free trade agreement with China and the EFTA member states: Iceland, Liechtenstein, Norway, and Switzerland. Last but not least, is the free trade regime with CIS countries, as well as Turkey and Ukraine. All of the above-mentioned enable Georgia-based businesses to access the market of 2.8 billion customers without customs duties.
Georgia’s strategic location and stable geopolitical environment made it attractive for transit pipelines. Its long-term prosperity is expected to be fueled by its role as a pipeline transit state. Currently, there are three major pipelines: Baku-Supsa Pipeline, Baku-Tbilisi-Ceyhan Oil Pipeline, and South-Caucasus Pipeline System.
Before the worldwide pandemic lockdowns, revenues from the tourism industry reached USD 3.3 billion back in 2019 while over 9 million international travelers visited the country. The country’s foreign policy has also reaped the benefits of visa-free travel to the EU. Georgian passport holders have been permitted visa-free travel to EU countries from March 28, 2017. Georgian foreign policy has also reaped the benefits of visa-free travel to the EU. As a whole, citizens from around 100 countries can travel visa-free to Georgia.