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Georgia has improved its status as a free economy thanks to its fiscal policy, regulatory efficiency, and open market policies. According to the World Bank’s Doing Business report 2020, Georgia ranks 7th for “ease of doing business” among 190 economies, 2nd for “ease of starting a business”, and 5th for “ease of registering property.”
In 2019, Fitch Ratings upgraded Georgia’s Long-Term Foreign-Currency Issuer Default Rating from ‘BB-‘ to ‘BB’ with a stable outlook. As Fitch explains, it was due to the country maintaining a resilient economy during the regional shocks in 2018 and adds that Georgia ranks above the current medians of ‘BB’ category peers. Standard & Poor’s also raised Georgia’s ranking from ‘BB-’ to ‘BB’, while Moody’s credit rating for Georgia remains at ‘Ba2.’
Registering a new business takes a maximum of two days and requires no minimum capital requirements. According to the ‘Heritage Foundation Index of Economic Freedom 2020,’ Georgia’s economy is categorized as Mostly Free, ranking 12th across 180 countries.
In 2019, according to the preliminary data of Geostat, the gross domestic product of Georgia reached an all-time high of GEL 40.4 billion. Despite the political and economic difficulties at the edge of the 2nd and 3rd quarters of 2019, the real GDP growth reached its maximum after 2015 at 5.1%, well above the Caucasus (Russia, Azerbaijan, Armenia, Georgia) region average of 3.7%.
As of 2019, according to the Ministry of Finance of Georgia, the ratio of total government debt to nominal GDP is 40.6%, well below the euro area average (86.4% – 2019 Q2). During the last eight years (up to and including 2018), the budget deficit has remained under 4%. As of 2018, the budget deficit constitutes only 2.9% of the nominal GDP.
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