Georgia moves one step forward on the Economic Freedom of the World index

Georgia has moved one step forward on the rankings of countries based on the Economic Freedom of the World index published by the Fraser Institute.

The institute ranks countries based on five areas: size of government, legal structure and security of property rights, access to sound money, freedom to trade internationally, and regulation of credit, labour and business.

The report of 2019 compares 162 countries and territories.

According to the Economic Freedom of the World index for 2019, Georgia's situation improved by 0.6 points in 2017 compared to 2016, shifting Georgia from 13th to 12th position.

Improving the position of the country in the Economic Freedom of the World index is due to improvement of the size of government by 0.08 (from 7.5 to 7.58) points which was reflected in the decrease of public consumption, transfers and subsidies compared to 2016.

Also, Georgia has improved legal structure and security of property rights by 0.03 points (from 6.31 to 6.34) which was reflected by a more impartial court, increased protection of property rights and increased assessment of police credibility.

Criteria for freedom of international trade has improved by 0.18 points (from 8.56 to 8.74) in Georgia. 

This was the result of increased tax revenue from public sector, less barriers in international trade and improved criteria in controls of the movement of capital and people. 

Regulation of credit, labour and business has improved by 0.05 units (8.1 to 8.15) in Georgia. 

This is the result of improved regulations of private sector loans, credit market regulations, employment and dismissal regulations, fulfilment of tax requirements and business regulations.