bne.eu: “Georgia looks east for economic boost”

Georgia is looking to capitalise on its blossoming relationship with China, which is being thrust into the spotlight at the inaugural Tbilisi Silk Road Forum, currently underway in Georgia’s capital.

bne INTELLINEWS reporter Monica Ellena sat down with Dimitry Kumsishvili, the country’s 41-year-old newly-appointed Minister of Economy and Sustainable Development, to discuss China’s ambitious plan to create a modern version of the ancient trade route, and what this could mean for Georgia.

China is very important for us,” says Kumsishvili. "Chinese investments in Georgia are very successful and [Beijng] is ready to start negotiations for a free trade agreement.”

While discussing the economic benefits of Georgia’s growing ties with China, Kumsishvili explains the country’s development potential and China’s impact on this.

"In 2014 we signed the Deep and Comprehensive Free Trade [Area] Agreement with the European Union, thus unlocking access to a 500 million-strong market, and we are finalising a similar trade deal with the European Free Trade Association. We also have a free trade accord with CIS countries and Turkey,” he says.

A deal with China means Georgia would have free trade agreements with "two thirds of the world population [and] shows that Georgia’s strength [lies] in its location for trade and logistics,” said Kumsishvili.

In the interview Ellena and Kumsishvili discuss the challenges facing the country, including how sanctions imposed on Russia affected Georgia’s economy, leading to the devaluation of the Lari and reduction in exports. But alongside these challenges was great opportunity.

The country enjoyed a positive business environment, investors were beginning to realise this and several large-scaled projects were underway, such as the Anaklia deep-sea port development and the Baku-Tbilisi-Kars railway project.

Read the full article here: www.bne.eu