2014-12-09
Tbilisi, 09 December 2014 - Prime Minister Irakli Garibashvili yesterday welcomed the release of new figures revealing a sharp increase in Foreign Direct Investment in the third quarter of 2014. Marking International Anti-Corruption Day, the PM said the increase in investment - which rose by 99% as compared to the same period in 2013 and 155% compared to 2012 - reflected increased investor confidence thanks to far-reaching reforms to the political and business climate in Georgia.
"We have greatly strengthened our institutions and put in place a stable, predictable and transparent legislative environment," said the PM. "We have instituted rule of law, cracked down on corruption, ensured access to impartial justice and provided robust protection of property," he added, noting that Georgia just last week moved further up the rankings of Transparency International's Corruption Perception Index. Georgia now ranks 50th worldwide, ahead of a number of EU member states. "Georgia is not open to business, but also safe for business," said Garibashvili.
Third quarter FDI figures stood at 508 million USD according to the preliminary data released on Tuesday by Geostat, the state statistics agency. The sectors that gained the most offshore investments were construction, transport and communication, manufacturing, finance, energy, hotels and restaurants. Top investors are China, Azerbaijan, the Netherlands and the USA.
Over the last two years, Georgia has overhauled its tax payment, inspection, and enforcement systems to increase transparency and decrease onerous fines. This has led to increased investor confidence and interest, and improved financial ratings. Georgia's GDP has grown by more than 6% so far in 2014. The international financial rating agencies have declared Georgia's financial stability and positive outlook and the World Bank's Doing Business 2015 report ranked Georgia 15th in the world for ease of doing business and said the country is the leading champion in the Europe and Central Asia region. The Heritage Foundation's 2014 Index of Economic Freedom ranked Georgia 22nd out of 178 countries and 12th out of 43 countries in the European region, with a score well above the regional average.
Georgia's foreign trade has also been increasing fast, and is set to gain further traction over the coming months thanks to the entry into force on 01 September of a Deep and Comprehensive Free Trade Area Agreement with the EU. Further reforms and alignment with EU standards as part of the implementation of the Georgia-EU Association Agreement are also expected to boost trade and investment.