US State Department Investment Climate Statements highlight Georgia’s “sound” business, investment conditions

The 2023 Investment Climate Statements of the United States Department of State on Thursday highlighted business and investment conditions in Georgia as “sound”, adding the country “favourably” compared to regional peers.

The report noted Georgia had made “sweeping” economic reforms since 1991 that had produced a “relatively well-functioning and stable” market economy, and pointed out its rankings in global business, governance, corruption, and other indexes had “steadily” improved.

The document stressed the country ranked “high” in the region as a “good place to do business” despite existing challenges, on which it said the Georgian Government continued to work. 

The United States supports Georgia’s sovereignty and territorial integrity within its internationally recognised borders and does not recognise the Abkhazia and South Ossetia regions of Georgia as independent.  Tensions still exist both inside the occupied territories and near the administrative boundary lines, but other parts of Georgia, including Tbilisi, are not directly affected”, the report noted.

It also highlighted transit and logistics were priority sectors, as Georgia was seeking to benefit from increased East-West trade through the country. 

“The Baku-Tbilisi-Kars railroad has boosted Georgia’s transit prospects and the Government has looked for ways to enhance trade. Georgia has long aimed to capitalise on its strategic location on the Black Sea by becoming an East-West transit and trade corridor for goods and energy.  The expanding Central Asian market has driven recent increases in cargo through this Middle Corridor, as the northern route through Russia is now considered riskier”, the document said.