Georgia, a small country located in the Caucasus region, is rapidly emerging as an attractive destination for foreign investors. Georgia’s economic growth eases to 10.2% in 2022. The growth has been boosted by tourism and inflows of capital and migrants from Russia.
Outpacing other countries in the region
In recent years, Georgia’s economy has outpaced the growth of other countries in the region. In 2021, Georgia’s GDP grew significantly higher than the average GDP growth rate of the Caucasus and Central Asia region.
Agriculture and tourism continue to be significant industries in Georgia. The country is the world’s second-largest exporter of hazelnuts and has seen steady growth in tourism in recent years.
Georgia’s location at the crossroads of Europe and Asia makes it an essential transit hub for both goods and people.
The country’s main port, Poti, is the largest on the Black Sea and handles over 80% of Georgia’s seaborne trade.
The country ranks 7th in the world in the World Bank’s “Ease of Doing Business” report, ahead of countries like Germany and the United Kingdom. The government has implemented several reforms to simplify business procedures, reduce corruption, and increase transparency.
Georgia’s innovation and technology sectors are rapidly growing, with several successful start-ups emerging in recent years. The country’s IT sector is one of the fastest-growing in the region, with exports of IT services growing by 30% annually.
Georgia has significant potential for renewable energy, with abundant hydro and solar resources. The country has set a target to generate 20% of its electricity from renewable sources by 2025.
It is actively expanding its international trade, signing several free trade agreements with countries like China, the European Union, and the United States. These agreements have helped to increase exports of Georgian goods and services.
Georgia has prioritized workforce skills development to meet the needs of a rapidly changing economy. The country also ranks first in the world in the number of people with tertiary education.
Georgia’s economy has made significant strides in recent years, driven by a favorable business environment, diversified industries, and strategic location.
The country’s focus on renewable energy, innovation, and workforce development is expected to continue to drive growth and make Georgia an attractive destination for foreign investors.