Georgia’s economic policy is oriented toward free, fair, inclusive and sustainable development, resulting in effective public services, open and fair market competition, the protection of property and intellectual rights, and freedom of access to a free judiciary.
The country’s strategic location at the crossroads between Europe and Asia gives Georgia many advantages for import and export activities, international business and foreign business investments. Here are five key aspects why Georgia is attractive for investors.
With a range of free trade agreements, Georgia offers customs tax-free access to 2.3 billion consumers, including in the European Union, China (including the Special Administrative Region of Hong Kong), Turkey, Ukraine, the Commonwealth of Independent States (CIS) and the European Free Trade Association (EFTA) states. Besides these, the country enjoys Generalized Scheme of Preferences (GSP) regimes with the USA, Canada and Japan – an additional market of 490 million consumers.
The predictable political and investment climate is ensured by the Association Agreement with the EU. The political system boasts an open democracy and has demonstrated the effective transition of governments with consistent commitment to economic liberalization and European integration.
The country provides investors with a young, skilled and competitively priced labor force. The average monthly salary in Georgia amounts to 400 euros, which includes blue- and white-collar workers, as well as C-suite executives.
Through anti-corruption legislation, effective law enforcement and free access to online registries, the Georgian economy promotes transparency and a smaller bureaucratic burden. Georgia ranks seventh out of 190 countries in terms of ease of doing business, according to the World Bank’s Doing Business 2020 study. Georgia has one of the lowest tax burdens in the world, with simple and service-oriented procedures. There are just six flat taxes at low rates. The corporate profit tax on retained profit is 0%.
According to the World Bank’s Enterprise Surveys, customs clearance in Georgia takes only 20 minutes and 80% of goods are free from import tariffs with no quantitative restrictions. The average time it takes to obtain an operating license is 4.5 days, while in the wider region it takes 23.8 days, and worldwide 28.3 days.
The same institution listed Georgia among the top 10 least corrupt countries out of 144 and singled it out for its improvement in the global Corruption Freedom Index. Just one example: The percentage of companies in Georgia that have experienced at least one bribe payment request is 1.3%, while the mentioned indicator reaches 10% in European and Central Asian countries and 12% worldwide.
Georgia offers attractive investment opportunities in the following sectors:
The hospitality and real estate industry represents one of the most promising economic sectors, which is fueled by consistent growth in tourist numbers. The government is actively working to develop various resort destinations and offers excellent opportunities to potential investors regarding hotel infrastructure development, medical tourism and wellness destinations.
The government aims to further strengthen the country’s transit function and form a logistical hub in the region. Georgia has four seaports and three international airports, as well as rapidly improving road and rail networks.
Georgia provides significant investment opportunities in the manufacturing industry. Regarding sub-industries – there are attractive investment opportunities in light and heavy industries such as apparel and textile manufacturing, transport and electrical parts, construction materials, paints, washing materials, pharmaceuticals etc.
The energy sector is full of opportunities for investors. The country has great potential for renewable energy: Georgia is among the top countries in terms of water resources per capita and only 20% is utilized. The country also has high potential for wind and solar energy production.
Furthermore, the government offers a number of support mechanisms to companies which are interested in investing. The state agency Enterprise Georgia provides full support to businesses at various stages of operation from the market entry stage to investment aftercare. The state-owned Partnership Fund provides equity financing to financially viable projects in order to decrease the country risks for foreign investors and acts as a sleeping partner with a predetermined, clear exit strategy.
Despite the negative impact of the Covid-19 pandemic on Georgia’s economy, the positive trend in its ratings by international institutions continues:
Fitch Ratings left the sovereign credit rating for Georgia unchanged at BB.
Moody’s Investors Service affirmed Georgia’s Ba2 rating with a stable outlook.
The country’s rating from Standard and Poor’s is BB Stable.
The Heritage Foundation puts Georgia in 12th place out of 180 countries worldwide and sixth in Europe, in its Index of Economic Freedom 2020.
David Dondua is the ambassador of Georgia to the Hellenic Republic.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
