EU Business Climate Report highlights Georgia’s economic leadership in region

The European Union on Thursday released the 2024 EU Business Climate Report with a detailed discussion on the business environment in Georgia.

A significant part of the report focused on the analysis of Georgia’s economy, noting that in 2023-2024, Georgia’s economy demonstrated robust growth, making it a regional leader with a stable trajectory despite the country’s challenges.

“Economically, Georgia is one of the leaders of the region. The growth in recent years has been steady, if not fast. Responsible macro policies, intensifying global integration, sound public investments, an attractive business environment, improving governance, and rising public spending underpinned the progress”, the report said.

The EU Business Climate Report further highlighted liberal foreign trade policy as one of the major principles of the economic policy of Georgia.

“Social indicators showed improvement, with the poverty rate decreasing from 47.7 percent in 2022 to 43.6 percent in 2023, and unemployment declining to 13.7 percent by mid-2024 due to higher labor force participation”, the document noted.

“In standards and regulations, Georgia has made significant strides in its regulatory system and quality infrastructure, focusing on market surveillance, harmonization with EU standards, SME support, and digitalisation of standards and technical regulations”, the report continued.

The document further added that the state budget for entrepreneurship development had substantially increased during the last few years, and correspondingly, Enterprise Georgia, Georgia’s Innovation and Technology Agency, and the Rural Development Agency had continued their programs:

• Enterprise Georgia (EG) has several support programs and activities to improve the overall level of entrepreneurship.
• Georgia’s Innovation and Technology Agency (GITA) is a state agency under the supervision of the Ministry of Economy and Sustainable Development. Its mandate is to coordinate and mediate innovation and technological development across the country.
• The Rural Development Agency (RDA) is to promote and stimulate the development of production-oriented agriculture in rural areas.

The report further emphasised the importance of public-private partnerships in Georgia’s economic progress, stating that addressing structural challenges and fostering an environment for innovation and investment would create conditions for sustainable economic growth and competitiveness.

The EU reaffirmed its long-term support for Georgia’s economic reforms and market integration, noting that the private sector plays a crucial role in shaping the country’s future.

“The EU remains committed to supporting reforms, skills development, and expanding trade opportunities”, the report concluded.