Located in the Caucasus region of Eurasia along the eastern shore of the Black Sea, Georgia shares borders with Turkey, Russia, Azerbaijan, and Armenia. The country is positioned along the shortest transit route between Western Europe and Central Asia—a valuable corridor for the transportation of both energy resources and dry cargo. Georgia’s oil and gas pipelines, well-developed railway systems, three Black Sea ports, and four international airports play an increasingly important role linking Europe with the flourishing Asian continent.
Since emerging as an independent state in 1991, Georgia has made significant political and social reforms resulting in extraordinary economic progress. From 1994 to 2010 GDP increased from US$6.5 billion to US$22.5 billion, growing at an average annual rate of 8.1 percent. Aided by foreign investment and prudent government spending, Georgia sustained double digit GDP growth in 2006 and 2007; domestic private consumption increased by over 220 percent to US$9.3 billion from 2003 to 2008. The country’s economy faltered in 2008, in the face of the global financial crisis and conflict with Russia, but quickly regained momentum, posting 6.4, 7, and 6 percent GDP growth in 2010, 2011, and 2012 respectively.
Georgia’s competitive tax regime, efficient regulatory framework and low-cost business environment provide a solid foundation for the continued growth of foreign trade and foreign direct investment. The government actively propagates pro-business policies and demonstrates continual commitment to private sector-led growth. Many sectors have already enjoyed significant development, including land and sea logistics, industrials, mining, financial services, tourism and energy.
Georgia ranks 9th globally in ease of doing business, according to the World Bank’s 2012 Doing Business survey, climbing up three slots from last year’s survey. And in 2012 Georgia advanced 11 spots in the World Economic Forum’s 2012-2013 Global Competitiveness Report. Stable economic growth is expected to continue under the new government that came to power through the 2012 parliamentary elections, as they remain committed to infrastructure development, economic diversification, and sound fiscal policies. Therefore, Schulze Global believes that the macroeconomic factors are in place for continued robust economic growth in Georgia. The country also stands to benefit from its highly educated labor force, its strategic location as a gateway between Europe and Asia, and its preferential trade arrangements with the United States, the European Union, Japan, and Canada.