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Georgia’s business environment resilient amid judicial challenges, US State Department

Politics
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Georgia continues to maintain a resilient business and investment environment, positioning itself favorably compared to its regional counterparts despite persistent challenges in its judicial sector, as noted in the US State Department’s 2024 report on Georgia’s investment environment. 

The report said since gaining independence in 1991, Georgia had implemented extensive economic reforms, fostering a stable and functional market economy and highlighted Georgia’s progress towards European integration, with the European Union granting candidate status in December 2023. 

Per the report, economically, Georgia had shown resilience, achieving average growth rates exceeding five percent from 2005 to 2023 and stressed despite challenges posed by the Covid-19 pandemic and regional tensions, the economy rebounded strongly, driven by tourism, increased immigration flows, and expanded transit trade.

However, the report said persistent challenges in the judicial sector continued to raise concerns. It noted businesses reported prolonged legal disputes, citing issues of political interference and inefficiencies at the municipal level. The report emphasized the need for Georgia to address the issues to maintain its economic momentum and attractiveness to investors.

According to the document, Georgia benefited from bilateral agreements, including a 1994 investment pact with the United States, allowing duty-free exports under the Generalized System of Preferences program. Despite economic progress, Georgia’s path to stability has been marred by historical conflicts, including ongoing Russian occupation in Abkhazia and South Ossetia, impacting territorial integrity, it added.

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