Economic Freedom: “Despite world and regional challenges Georgia demonstrated resilience”

The 2016 Index of Economic Freedom released by Washington-based Heritage Foundation says despite global and a regional challenges Georgia’s economy has demonstrated "considerable resilience”. 

The annual report measuring the degree of economic freedom in 186 nations also stated in its 2016 survey, released yesterday, that efforts to eliminate corruption and restore fiscal soundness by revitalising the commitment to limited government have borne fruit.

Two years of fiscal consolidation has kept government spending under control and ensured macroeconomic stability,” read the report.

It also highlighted Georgia’s pursuit of greater economic freedom, reinforced by relative political stability, had made its entrepreneurial environment "one of the best in the region”. 

Large-scale privatisation has advanced, and anti-corruption efforts have yielded tangible results. Deeper institutional reforms to enhance judicial independence and effectiveness remain critical,” the annual report said. 

The Index of Economic Freedom, created by the Heritage Foundation in partnership with the Wall Street Journal, is this year published for the 22nd time. The report measured economic freedom based on 10 quantitative and qualitative factors, grouped into four broad categories of economic freedom:

• Rule of Law (property rights, freedom from corruption);
• Limited Government (fiscal freedom, government spending);
• Regulatory Efficiency (business freedom, labor freedom, monetary freedom); and
• Open Markets (trade freedom, investment freedom, financial freedom).

The survey divided nations into five major categories: Free (80-100), mostly free (70- 79.9), moderately free (60-69.9), mostly unfree (50-59.9) and repressed (0-49.9). 

A snapshot of Georgia’s economic freedom in 2016: 

• 2016 Economic Freedom Score: 72.6 (out of 100; 100 is the best outcome); 
• Economic Freedom Status: Mostly Free 
• Global Ranking: 23rd
• Regional Ranking: 12th in Europe
• Notable Successes: Management of Public Finance, Open Markets, and Regulatory Efficiency
• Concerns: Rule of Law
• Overall Score Change Since 2012: +3.2

See the full report here.