“Our market is fully open, economy – liberal and location – strategic” states Prime Minister of Georgia Print Version

2019-03-15

"For international investments we are remarkably attractive. Our market is fully open, our economy is liberal and our location is strategic" announced Mamuka Bakhtadze, Prime Minister of Georgia at the Japan-Georgia Business Forum held in Tokyo today.

Head of Government of Georgia focused on the excellent people-to-people and political relations, thereby noting that time has come to let these extraordinary relations expand to the economic interaction.

Prime Minister of Georgia spoke about a wide-scale education system reform, according to which funding from the State Budget towards this end will reach 6% of GDP by 2022.

"Japan has always stood out in the world as a country that sets an extraordinary example across the world of how tradition and progress can harmoniously coexist and lay the ground for an unprecedented success. That is exactly how we see ourselves develop, but it is impossible to build a truly sustainable and resilient economy without strong Human Capital. For that very reason we have started a very ambitious Education Sector Reform in my country.

We want to make Education a dominating sector of our economy and to accommodate upto 11% of GDP through Public-Private Partnerships (PPP), by 2022 we will spend 6% of GDP annually through our state budget.

As I often say, in terms of reforms we don't have Low Hanging Fruits Left - as we have a very ambitious goal to make Georgia multi-dimensional regional hub we seek to challenge the most sensitive and resourceful undertakings. Georgia is by all accounts a natural candidate to become a regional and global business hub. Located at the crossroads between Europe, Asia and the Middle East, we are a small but remarkably attractive economy for international investments. Our market is fully open, our economy is liberal and our location is strategic" added the Prime Minister of Georgia

Head of Government of Georgia underlined the achievements made by the country and noted that Georgia ranks 6th in the world and 1st in Europe in terms of Doing Business according to the World Bank Index.

"According to the IMF, Georgia will have highest growth rate among neighboring countries and during the next three years our annual GDP growth should be no less than 5%. On top of it we have the lowest tax burden in the world. Our goal is to build an inclusive economy that will be fully integrated within the global context as a trade hub connecting East to West and here we see tremendous growth opportunities specifically in the transport, logistics, energy, tourist and IT sectors. Two weeks ago Fitch upgraded our sovereign ranking up to BB and let me highlight that Georgia is the only country in the region that has been upgraded. Role of infrastructure is crucial on this path, for that reason we are aiming to finalize all our major infrastructural projects by 2023. We are building a Deep See Port in Anaklia on our side of the Black Sea to expand dimensions, increase capacities and facilitate the growing trade between East and West. Georgia is a gateway for 8 landlocked countries - including South Caucasus and Central Asia. One of the major goals that we have, we aim of course to integrate Georgia in the global economy in the best way possible. For that very reason Georgia is the only country in the region that has Free Trade Agreements with European Union, China and CIS countries. This means that we provide access to 2.3 billion consumers via our Free Trade Agreements" noted the Prime Minister of Georgia.

Memorandum of Understanding (MOU) has been concluded by and between Ministry of Economy and Sustainable Development of Georgia (MOESD) and Nippon Export and Investment Insurance (NEXI; Japanese Government Corporation) within the scope of the Business Forum. Signatories were Giorgi Kobulia of MOESD and Masafumi Nakada of NEXI.

In the opinion of the Prime Minister of Georgia, MOU will lead to a greater cooperation of two nations in the development of trade and investments. At the same time, Head of Government of Georgia noted that negotiations have been successfully concluded on the Bilateral Investment Treaty (BIT), which is a pre-requisite for greater investments to be made from Japan in Georgia.

"In conclusion, let me shed the light on Georgia's huge potential for economic growth and its resources for becoming the regional hub for international investors. Japan for us sets a very good example of how a nation with a strong will can overcome any hurdles and succeed. Again, with your assistance and partnership we are reminded every day about a brighter future that lies ahead of us. Dear friends, dear colleagues let me thank you again for being interested in Georgia and I hope to see many of you in my home country as soon as possible" added the Prime Minister of Georgia.

Japan-Georgia Business Forum is attended by over 150 companies, of which 30 are from Georgia.

Prime Minister's Press Office