OECD: Georgia ranks high in doing business, openness to foreign investment
OECD: Georgia ranks high in doing business, openness to foreign investment

“Georgia ranks among the best performers in the world according to international indices on doing business and openness to foreign investment,” the Organisation for Economic Co-operation and Development (OECD) reported on Tuesday.

The 2020 OECD report reads that the Georgian government has continued to adopt a fast-paced approach to reforms to attract investors and support private sector development. These efforts have yielded strong Gross domestic product (GDP) growth and an increase in Foreign Direct Investment (FDI) stock to more than 100% of GDP.

OECD stressed that amid the pandemic, Georgia took swift monetary and fiscal measures to support healthcare provision and liquidity, and assist at-risk firms and individuals.

“Disruptions to business, travel, remittances, and investment are nonetheless likely to have a severe impact on the economy. Private investment, both foreign and domestic, will be essential for Georgia’s economic recovery,” the report reads.

OECD noted that due to successive reforms to improve the legal framework for investment, Georgia is now open to foreign investment in most sectors but limited restrictions remain, notably in the agricultural sector. However, despite progress, OECD pointed out Georgia’s unsolved challenges, including low productivity and exports as well as unemployment and poverty in rural areas.

“Investment in agri-food value chains can help enhance productivity growth, bolster incomes, improve food security, support rural development, and maintain competitiveness in international markets,” the report reads.

OECD added that several areas of Georgia’s investment promotion framework could be strengthened.

“Further measures would be welcome to strengthen the independence of the judiciary and enhance access to both state-based and non-state based remedy, and fully ensure that civil society can operate freely. Labour protection has been reformed and strengthened, including occupational health and safety and the re-establishment of labour inspection,” OECD noted.