Georgian Economic Outlook€¦ · • Import – 8,596 mln. USD (7.1% growth) • Balance –...
Transcript of Georgian Economic Outlook€¦ · • Import – 8,596 mln. USD (7.1% growth) • Balance –...
Georgian Economic Outlook
Ministry of Economy and Sustainable
Development of Georgia
2014
Ministry of Economy and Sustainable Development of Georgia
Country Overview
Area 69 700 sq km
Population 3,7 mln
Life expectancy 72.9 years
Official language Georgian
Literacy 100%
Currency Lari (GEL)
GDP: 2014* US$ 16.5 billion
GDP - real growth rate 2014* 4.8%
GDP - Per Capita 2014* US$ 3,680.8
Inflation rate 2014 (average annual; e-o-p)
3.1%; 2.0%
Public External debt to GDP 2014 26.8%
Ministry of Economy and Sustainable Development of Georgia
Economic Growth
Nominal GDP and Real Growth Nominal GDP Per Capita
Construction 13.5%
Financial Intermediation 11.9%
Financial Activities 10%
Real estate 8.5%
Communication 7.1%
Transport 6.4%
Trade 6.1%
Hotels and Restaurants 5.6%
Manufacturing 3.9%
Fastest Growing Sectors 2014* Components of Nominal GDP 2014*
Source: GEOSTAT
7.8
10.2
12.8 10.8
11.6
14.4 15.8 16.1 16.5 9.4%
12.6%
2.6%
-3.7%
6.2% 7.2%
6.4%
3.3%
4.8%
0
5
10
15
20
2006 2007 2008 2009 2010 2011 2012 2013 2014*
US
$ b
illi
on
Nominal GDP GDP real growth
1764
2315
2921
2455 2623
3231 3523 3600 3681
0
500
1000
1500
2000
2500
3000
3500
4000
2006 2007 2008 2009 2010 2011 2012 2013 2014*
US
$
Trade 17.4%
Industry 17.1%
Transport & Communication
10.5% Public Administration
9.9%
Agriculture 9.2%
Construction 7.3%
Real Estate 6.0%
Healthcare 5.7%
other 16.8%
Ministry of Economy and Sustainable Development of Georgia
• End of period – 2.0%
• Average annual – 3.1%
Inflation Trend 2004 - 2014
Monthly Inflation
Inflation 2014
Monthly Inflation
Source: GEOSTAT
Inflation
5.7
8.2 9.2
9.2
10.0
1.7
7.1 8.5
-0.9
-0.5
3.1
7.5
6.2
8.8
11.0
5.5 3.0
11.2
2.0
-1.4
2.4
2.0
-4.0
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
12.0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%
Average annual End of Period
0.3 -0.3
-0.1
0.4
0.7
-0.6 -1.3
0.0 -0.1
1.5 0.5
1.5
0.8
0.2 -0.1
0.3 -0.3
-0.9
-0.6
0.5
1.2
0.3
-0.1
0.7
0.2 0.1 1.2 0.3
-2
-1
0
1
2
I II III
IV V VI
VII
VII
I
IX X XI
XII I II III
IV V VI
VII
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IV
2013 2014 2015
%
CPI to the previous month
-5.0
0.0
5.0
10.0
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XII I II III
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2013 2014 2015
%
CPI to the same month of previous year
CPI 12 months average over the previous 12 month average
Ministry of Economy and Sustainable Development of Georgia
Social Statistics
Subsistence Minimum (working age male) Subsistence Minimum, 2014
For working age male – 154,5 GEL
For average consumer – 136,9 GEL
For average family – 259,2 GEL
Source: GEOSTAT
Inequality Indicators, 2013 Share of population under 60 percent of the median consumption (%)
• Georgia – 21.4%
• Urban – 15.4%
• Rural – 27.1%
Poverty Threshold, 2013
Beneficiaries of subsistence allowance – 437 238 person
Change - 0.3%
Share of population under the poverty threshold – 9.7% Share of the Population Under
Poverty Threshold
6.4
8.4
9.9 9.7 9.2 9.7 9.7
0
2
4
6
8
10
12
2007 2008 2009 2010 2011 2012 2013
%
95.8 106.5
118.6 127.9 128.8 134.3
157.8 151.1 149 154.5
0
20
40
60
80
100
120
140
160
180
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GE
L
Ministry of Economy and Sustainable Development of Georgia
Unemployment Rate Monthly Salary of Employed in
State and Non-state Sectors, 2013
Average – 773.1 GEL, growth 8,5%
State Sector - 795.1 GEL, growth 6,2%
Non-state Sector - 738.7 growth 12,6%
Business Sector - 760.1 GEL, growth 6,4%
Non-business Sector - 794.3 Gel, growth 12,0%
Source: GEOSTAT
Unemployment rate – 12.4% • Employed population – 1,745.2 thousand
hired – 692.3 thousand
self employed – 1,046.1 thousand
• Unemployed population – 246.0 thousand
Unemployment Rate, 2014 Monthly Nominal Salaries, 2013
Labour Market
194 249
312
481 513 539
589 656
739
228
316
438
603 609 661 670
749 795
0
100
200
300
400
500
600
700
800
2005 2006 2007 2008 2009 2010 2011 2012 2013
GE
L
state sector non-state sector
13.8 13.6 13.3
16.5 16.9 16.3 15.1 15.0 14.6
12.4
0
3
6
9
12
15
18
21
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%
Ministry of Economy and Sustainable Development of Georgia
Foreign Trade
Foreign Trade 2014*
Total Trade Turnover – 11,457 mln. USD (4.6% Growth)
• Export – 2,861 mln. USD (1.6% decline)
• Import – 8,596 mln. USD (7.1% growth)
• Balance – -5,735 mln. USD (12.0% increase)
Source: GEOSTAT
10 main Trade Partners, 2014*
Foreign Trade – Turnover, Export, Import
Foreign Trade by Country Groups 2014*
3,353
4,611
6,444
7,797
5,634
6,935
9,254
10,424
10,934
11,457
865
936
1,232
1,495
1,134
1,677
2,189
2,375
2,908
2,488
3,675
5,212
6,302
4,500
5,257
7,065
8,049
8,026
8,596
-1,622
-2,738
-3,980
-4,806
-3,367
-3,580
-4,876
-5,674
-5,118
-5,735
-8,000 -6,000 -4,000 -2,000 0 2,0 00 4,0 00 6,0 00 8,0 00 10, 000 12, 000
-8,000 -6,000 -4,000 -2,000 0 2,000 4,000 6,000 8,000 10,000 12,000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014*
Foreign Trade ( US$ million)
Turnover Export Import Balance
1967
1182
853 823 868
535 499 495 374 371
0
400
800
1200
1600
2000
US
$ m
illi
on
Export Import Turnover
0
1,0 00
2,0 00
3,0 00
4,0 00
5,0 00
6,0 00
7,0 00
0
1,000
2,000
3,000
4,000
5,000
EU CIS BSEC OECD GUAM
Turnover Import Export
Ministry of Economy and Sustainable Development of Georgia
Foreign Trade with Country Groups
Source: GEOSTAT
0
1,000
2,000
3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014*
CIS (US$ million)
Export Import
0
1000
2000
3000
4000
5000
6000
2006 2007 2008 2009 2010 2011 2012 2013 2014*
OECD (US$ million)
Export Import
0
500
1,000
1,500
2,000
2,500
3,000
2006 2007 2008 2009 2010 2011 2012 2013 2014*
EU (US$ million)
Export Import
0
500
1,000
1,500
2006 2007 2008 2009 2010 2011 2012 2013 2014*
GUAM (US$ million)
Export Import
0
1000
2000
3000
4000
5000
2006 2007 2008 2009 2010 2011 2012 2013 2014*
BSEC (US$ million)
Export Import
Ministry of Economy and Sustainable Development of Georgia
Foreign Trade Structure 2014*
Source: GEOSTAT
Georgian Exports by Country
Georgian Imports by Commodity Group Georgian Exports by Commodity Group
Georgian Imports by Country
18.1%
10.0%
8.7%
6.4%
6.3% 4.8% 4.8%
3.3% 3.2%
2.2%
32.1%
Motor cars
Ferro-alloys
Copper ores
Nuts
Wine
Fertilizers
Mineral waters
Spirituous beverages
Medicaments
Bars and rods
Other products
19.0%
10.1%
9.6%
8.4% 7.3%
5.7%
4.9%
3.2% 3.1%
3.0%
25.8% Azerbaijan
Armenia
Russia
Turkey
USA
Bulgaria
Ukraine
China
Kazakhstan
Italy
Others
20.1%
8.5%
7.4%
6.7%
6.4% 5.4% 4.3%
3.6%
3.3%
2.6%
31.6%
Turkey
China
Azerbaijan
Russia
ukraine
Germany
Japan
Romania
USA
Italy
Others
10.7%
8.3%
4.3%
3.7%
2.3% 1.9% 1.8% 1.3% 1.2% 1.1%
63.5%
Petroleum
Motor cars
Petroleum gases
Medicaments
Telephone sets
Copper ores
Wheat
Cigarettes
Autom. data proc.machinesParts of iron or steel
Ministry of Economy and Sustainable Development of Georgia
Trade Policy
• Free Trade Regime – with CIS countries and Turkey (since 2008)
• Most Favored Nation Regime (MFN) – with World Trade Organization (WTO) member countries
• Preferential Regime (GSP) – with USA, Canada, Japan, Switzerland, Norway
• Preferential Regime (GSP+) – with EU (7200 items) since 2005
Competitive Trade Regimes
• Low import tariffs
• Few export/import licenses and permits
• No quantitative restrictions on import and export
• No customs tariff on export and re-export
• No VAT on export
• Simplified export and import procedures
Main Features of Georgian Trade Policy
Georgia has bilateral treaties on investment
promotion and protection with 31 countries
Georgia has concluded double taxation
treaties with 47 countries
Ministry of Economy and Sustainable Development of Georgia
Economic Integration with the EU
Prospects & Opportunities
Association Agreement (AA) with its integral part – Agreement on Deep and
Comprehensive Free Trade Area (DCFTA) is the new stage of Georgia’s deeper political
& economic integration with the EU
Negotiation on Association Agreement with its integral part – DCFTA successfully finalized in July 2013
AA was initialed at Eastern Partnership Vilnius Summit in November 2013
AA was signed in June 2014 & ratified by Parliament of Georgia in July, 2014
DCFTA is provisionally applied since September 1, 2014
DCFTA provides
Liberalization of trade with the EU
Free movement of goods, services & capital
Growth of export potential
Growth of investment potential & opportunities
Ministry of Economy and Sustainable Development of Georgia
FDI inflows
FDI by Countries
Foreign Direct Investment
FDI 2014* – 1 272,5 mln. USD
• growth – 35,1%
• share in GDP – 7,7%
FDI 2013 – 941,9 mln. USD
FDI by Sectors 2014*
2013 2014*
Netherlands 16% Netherlands 26%
Luxemburg 15% Azerbaijan 24%
China 10% China 15%
Azerbaijan 9% United Kingdom 9%
United Arab Emirates 6% Luxemburg 7%
United Kingdom 6% USA 6%
USA 5% Turkey 5%
Czech republic 5% Russia 5%
Subtotal 72% Subtotal 97%
Other 28% Other 3%
Total 100% Total 100%
Source: GEOSTAT
26%
18%
15%
11%
5%
5%
4%
1% 15%
Transport and Communication
Construction
Manufactuing
Energy sector
Real estate
Financial sector
Mining
Hotels and restaurants
Other sectors
450 1190 2015 1564 658 814 1117 912 942 1273
7.0
15.3
19.8
12.2
6.1 7.0 7.7 5.8 5.8 7.7
0
5
10
15
20
25
0
500
1000
1500
2000
2500
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014*
%
US
$ m
illi
on
FDI share in GDP (%)
Ministry of Economy and Sustainable Development of Georgia
Fiscal and Monetary Performance
Source: National Bank of Georgia Source: National Bank of Georgia
NBG’s Gross FX Reserves
Source: National Bank of Georgia
Tax Revenue Performance Exchange Rate Evolution 5517.7
4917.0
5421.5
6388.8
7115.3
6839.5
7319.0
4541.6
4161.7
4592.4
5802.0
6311.1
6287.7
6820.0
33.4
31.6
30.1 30.5
31.6
29.3
29.1
26
27
28
29
30
31
32
33
34
0
2000
4000
6000
8000
2008 2009 2010 2011 2012 2013 2014*
%
mln
. G
EL
Budget Revenue Taxes Revenues as a % of GDP (RHS)
1.91 1.81 1.77
1.67 1.49
1.67 1.78
1.68 1.65 1.67 1.77
2.38 2.25 2.23 2.29 2.20
2.33 2.36 2.35 2.14 2.22
2.34
1.00
1.50
2.00
2.50
3.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
GEL/USD GEL/EURO
2,8
40
2,8
57
2,8
17
2,7
98
2,7
93
2,7
81
2,8
07
2,9
44
2,9
15
2,8
49
2,8
41
2,8
73
2,9
21
2,9
60
2,9
41
2,9
68
3,0
38
2,9
82
3,0
49
3,0
95
3074.5
3110.1
3030.8
2823.4
2566.5
2625.8
2598.6
2561.5
2546.8
88469
2498.1
41455
2499.5
3621
2707.9
00374
2701.2
2661.9
2607.5
2699.2
2610.1
2469.4
2452.9
2430.9
1,500
1,800
2,100
2,400
2,700
3,000
3,300
I II III
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2012 2013 2014 2015
US
$ m
ln
Ministry of Economy and Sustainable Development of Georgia
Tax Policy
Reduced number of taxes from 21 to 6 (2004-2008)
Reduced tax rates
Taxes/Rates
• Personal Income Tax – 20%
• Corporate Income Tax – 15%
• VAT – 18%
• Excise Tax – Varies
• Import Tax – 0%, 5% or 12%
• Property tax – 1% on the self-assessed value of property
Special/preferential tax treatment for Micro and Small Enterprises
• Micro Business (turnover no more 30 000 GEL) – exempted from taxes
• Small Business (turnover no more 100 000 GEL) – pays 3% or 5% of taxed income
Ministry of Economy and Sustainable Development of Georgia
Current Account Balance
Current Account Balance
Source: National Bank of Georgia
181.6 416.2 359.0 523.9 688.5 1,060.4 967.5 109.8 1,328.7 1,407.6 1465.6 1431.6
-383.7 -354.4 -709.7 -1,175.5
-2,009.4 -2,813.4
-1133.9 -1,192.7 -1,840.2 -1850.9
-927.0 -1605.9
-6000.0
-4000.0
-2000.0
0.0
2000.0
4000.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
US
$.
mln
Goods Services Income, net Transfers, net Current Account
-383.7 -354.4 -709.7 -1,175.5 -2,009.4
-2,813.4
-1133.9 -1,192.7 -1,840.2 -1,850.9
-927.0 -1605.9
351.2 478.2 735.1 1502.5
2294.4 2889.6
1533.0 1227.3
2244.8 1782.0
778.3
1513.0
-25
-20
-15
-10
-5
0
5
10
15
20
25
-4,000.0
-3,000.0
-2,000.0
-1,000.0
0.0
1,000.0
2,000.0
3,000.0
4,000.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%
US
$.
mln
CAD Total Private Capital Inflow (TPCI) CAD as a % of GDP
Ministry of Economy and Sustainable Development of Georgia
Public External Debt
Public External Debt, 2014– 3,956 US$ mln
PED breakdown by origin (million USD)
Source: Ministry of Finance of Georgia
Long-term external funding boosting the
economy in short and long-term future
Total 3956 Armenia 13,5
Multilateral 2913 Uzbekistan 0,3
WB-IDA 1285,3 Ukraine 0,2
WB-IBRD 485,8 Kazakhstan 27,8
IFAD 30 China 3,9
IMF 169,3 Germany 296,2
EBRD 96,1 Kuwait 18,5
European Investment
Bank (EIB) 197,2 Netherlands
1,6
Asian Development Bank
(ADB) 604,7 Japan
139,4
Bilateral 741,7 United States 28,9
Austria 13,3 France 61,4
Azerbaijan 11,5 Government Bonds 500,0
Turkmenistan 0,2 Eurobonds 500,0
Turkey 22 External Guaranteed 3,0
Iran 9 Germany 3,0
Russia Federation 94 IMF 42,6
Share of Public External Debt in GDP
Public External Debt
1592 1502 1461 1541
2226
2694
3284 3608
3997 4086 3956
-10
0
10
20
30
40
50
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%
US
$.
mln
External Debt Change, %
34.5
26.8
21.1 16.8
23.5
31.7 33.6
28.8 27.6 27.2 26.8
0
5
10
15
20
25
30
35
40
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
%
Ministry of Economy and Sustainable Development of Georgia
Dynamics of Brussels Pledge ($4.5 billion) Implementation
Commitments by Sectors Brussels Pledge Update - Public &
Estimated Private Sectors
Commitments (signed) so far by Donors,
Public Sector Operations
Implementation/disbursement shall last until 2015, providing
low-cost stimulus to the economy and allowing to retain
policy/fiscal space.
Direct Budget Support
21%
IDPs 6%
Transport Infrastructure
17% Energy
Infrastructure 12%
Urban and Municipal
Infrastructure 15%
Private Sector 19%
Agriculture and other
10%
ADB 18%
WB 20%
Germany 8%
USG & EC 33%
EBRD 6%
EIB 5%
Japan 6%
Other 4%
DISBURSED $2.5 Billion
PLEDGED & COMMITTED $4.5 Billion
Ministry of Economy and Sustainable Development of Georgia
Entirely private owned since 1996
No restrictions on foreign ownership of banks
Robust Banking Sector
Source: National Bank of Georgia
In 2014 Georgia’s banking sector is represented by 20 commercial banks:
Ministry of Economy and Sustainable Development of Georgia
Banking Performance
Deposits and loans in 2014
Deposits – 12 425,5 mln.GEL
• National currency – 4 948,9 mln. GEL
• Foreign currency – 7 476,6 mln. GEL
Growth – by 20.8%
Loan – 12 478,5 mln.GEL
• Sectors – 6 353,9 mln. GEL
• Households – 6 124,6 mln. GEL
Growth – 23.4%
FDI in Financial Sector
• In 2014* FDI in financial sector – 78.1 mln. USD
• 6.1% of total FDI
Source: National Bank of Georgia
Deposits and Loans 2004-2014
FDI in Financial Sector
157.7 10.9 49.7
107.4
167.7 162.6 166.4
78.1
7.8
0.7
7.5
13.2 15.0
17.8 17.7
6.1
0
5
10
15
20
0
50
100
150
200
2007 2008 2009 2010 2011 2012 2013 2014*
%
US
$ m
ln
FDI in Financial Sector Percent of total FDI
983
1538
2328
3511
3845
417
4
5818
7352
8203
10288
12425
942
1696
2629
4421 5793
4985
5946
7450
8372
1011
5 12
479
0
2000
4000
6000
8000
10000
12000
14000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
mln
. G
EL
Deposits Loans
Ministry of Economy and Sustainable Development of Georgia
Tourism
Arrivals of Non-resident Visitors
Tourism sector is characterized with growing tendency during last years
In 2014, number of visitors to Georgia amounted to 5 515 559 persons and increased by 2,3%
compared to the same period of the previous year
Source: Georgian National Tourism Administration
Country 2013 2014
EUROPE 5 168 046 5 354 633
AMERICAS 32 583 34 630
EAST ASIA/PACIFIC 121 649 81 301
MIDDLE EAST 63 063 38 764
AFRICA 5 024 4 109
OTHERS 1 938 2 122
Total 5 392 303 5 515 559
17.5%
52.0%
36.3% 37.8% 22.7%
16.3%
35.4% 38.9%
56.9%
21.8%
2.3% 0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
0
1000
2000
3000
4000
5000
6000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
tho
usa
nd
pers
on
Arrivals Growth (%)
Ministry of Economy and Sustainable Development of Georgia
Turnover (2006 - 2014)
Output (2006 - 2014)
2014
Turnover – 46 141,2 mln. GEL (increased by 4.1%)
Output – 23 941,1 mln. GEL (increased by 1,6%)
Salaries – 980,5 GEL
Employment – 534 952 persons
Source: GEOSTAT
Enterprises Statistics
13.1 17.5
19.7 20.3 24.4
36.7
42.0 44.3 46.1
29.9 34.0
12.0
3.3
20.2
50.5
14.5
5.4 4.1
0
10
20
30
40
50
60
0
10
20
30
40
50
2006 2007 2008 2009 2010 2011 2012 2013 2014
%
bil
lio
n G
EL
Turnover Change (%)
7.4 9.6 10.2 11.0
13.3
19.2
23.1 23.6 23.9
27.0 30.1
6.3 7.4
20.9
44.6
20.0
2.0 1.6
0
10
20
30
40
50
0
5
10
15
20
25
30
2006 2007 2008 2009 2010 2011 2012 2013 2014
%
bil
lio
n G
EL
Turnover Change (%)
Ministry of Economy and Sustainable Development of Georgia
2014
Turnover – 8 637,4 mln.GEL (increased by 7.4%)
Output – 7 633,1 mln.GEL (increased by 4.6%)
Industry in GDP ინ 2014*
Real Growth – 2.2%
Manufacturing – 2 674.3 mln. GEL (real growth – 3.9%)
Processing of products by households – 696.1 mln. GEL (real
growth – 1.1%)
Electricity, gas and water supply – 712.7 mln. GEL (real growth
- -2.8%)
Mining and Quarrying – 204.5 mln. GEL (real growth – 1.8%)
Output (2006 – 2014)
Turnover (2006 - 2014)
Source: GEOSTAT
Industry
3.2
4.4 4.6 4.4
5.5
7.2 7.6 8.0
8.6
0.0
35.1
6.3
-5.0
25.7 30.5
4.4 6.5 7.4
-8
0
8
16
24
32
40
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
2006 2007 2008 2009 2010 2011 2012 2013 2014
%
bln
GE
L
Turnover Change (%)
2.8 3.6 3.8 3.8
4.8
6.4 6.9 7.3 7.6
21.6
28.9
6.7
-0.6
27.7 32.6
6.8 6.3 4.6
-5
0
5
10
15
20
25
30
35
40
-10123456789
2006 2007 2008 2009 2010 2011 2012 2013 2014
%
bln
. G
EL
Output Change (%)
Ministry of Economy and Sustainable Development of Georgia
Georgia in International Ratings
“Doing Business 2015” (WB & IFC) – 15th
place (14th place in 2014)
Top Improver since 2005 in EE&CA and
globally with 37 institutional reforms
Georgia is among TOP 10 countries in following
areas:
• Registering Property - 1st place
• Dealing with Construction Permits – 3rd place
• Starting a Business – 5th place
• Getting Credit – 7th place
Doing Business, 2015
112
96
80
62
55
45
24
23
17
15
3
2
1
Georgia /2006
Ukraine
Azerbaijan
Russia
Turkey
Armenia
Lithuania
Latvia
Estonia
Georgia
Hong Kong
New Zealand
Singapure
Ministry of Economy and Sustainable Development of Georgia
Georgia in International Ratings
“Index of Economic Freedom 2014” (Heritage
Foundation) – 22nd place – Mostly Free
• 12th place in Europe (out of 43 countries in region)
Improved scores in: • Freedom from Corruption – up by 6.2 points
• Government Spending – up by 4.1 points
• Monetary Freedom – up by 4.3 points
• Business Freedom – up by 0.8 points
Index of Economic Freedom, 2014
“Economic Freedom of the World 2014” (Fraser
Institute) – 16th place (73rd place in 2004)
Improved scores in:
• Size of Government – 7.11 (up by 0.35 points)
• Legal System & Property Rights – 5.77 (up by 0.09
points)
• Sound Money – 9.17 (up by 0.14 points)
• Regulation – 8.15 (up by 0.07 points)
Index of Economic Freedom, 2014
49.3
51.9
61.3
64.9
68.7
68.9
72.6
73.0
75.9
82.0
89.4
90.1
Ukraine 155
Russia 140
Azerbaijan 81
Turkey 64
Latvia 42
Armenia 41
Georgia 22
Lithuania 21
Estonia 11
Australia 3
Singapure 2
Hong Kong1 Free
(100-80)
mostly
free
(79.9-70)
mostly unfree
(59.9-50)
moderately
free
(69.9-60)
repressed
(49.9-0)
122
115
98
86
73
71
44
27
22
17
16
3
2
1
Ukraine
Azerbaijan
Russia
Moldova
Georgia/2004
Turkey
Latvia
Lithuania
Estonia
Armenia
Georgia
New Zealand
Singapore
Hong Kong
Ministry of Economy and Sustainable Development of Georgia
Georgia in International Ratings
“Corruption Perception Index 2014”
(Transparency International) – 50th
place (up from 133rd in 2004)
Improved positions because of:
• Highly effective reforms in earning public confidence
• Highly effective steps in improving country’s
international image
• Fallen of petty corruption
Corruption Perception Index, 2014
142
136
133
126
94
64
50
43
39
26
3
1
1
Ukraine
Russia
(Georgia, 2004)
Azerbaijan
Armenia
Turkey
Georgia
Latvia
Lithuania
Estonia
Finland
New Zealand
Denmark
Ministry of Economy and Sustainable Development of Georgia
Georgia in International Ratings
“Global Enabling Trade Index 2014” (World Economic Forum) – 36th place amongst 138
countries (up from 38 in 2012)
• Market Access – 13rd position
• Border Administration – 35th position
• Infrastructure – 71th position
• Operating environment – 48th position
Global Enabling Trade, 2014
Paying Taxes 2015 – the Global Picture’s „Ease
of Paying Taxes“ – 38th place out of 189
countries (up from 29 in 2014)
“Best Countries for Business 2015” (Forbes) - 47th
place out of 146 countries (50th place in 2012)
1
28
36
41
44
46
53
77
83
92
105
Singapore
Estonia
Georgia
Latvia
Lithuania
Turkey
Armenia
Azerbaijan
Ukraine
Moldova
Russia
• Trade Freedom – 6th place
• Monetary Freedom – 52nd place
• Property Rights – 105th place
• Innovation – 120rh place
• Technology – 66th place
• Red Tape – 5th place
• Investor Protection – 42nd place
• Corruption – 46th place
• Personal Freedom – 67th place
• Tax Burden – 34th place
• Total Tax rate – 16,4
• Time to comply (hours) – 362
• Number of Payments – 5
Ministry of Economy and Sustainable Development of Georgia
Georgia in International Ratings
“Bertelsmann Transformation 2014” (Bertelsmann
Foundation)
Status Index, 2014
Management Index, 2014
Status Index – 48th place (up from 58th in 2012)
• Political Transformation – 52nd place
• Economic Transformation – 57th place
• Management Index – 41st place (up from 53rd
place in 2012)
1
3
7
12
20
45
48
57
62
77
88
Taiwan
Estonia
Lithuania
Latvia
Turkey
Moldova
Georgia
Ukraine
Armenia
Russia
Azerbaijan
1
4
8
12
14
41
47
69
87
100
104
Taiwan
Estonia
Lithuania
Latvia
Turkey
Georgia
Moldova
Armenia
Ukraine
Azerbaijan
Russia
Ministry of Economy and Sustainable Development of Georgia
Georgia in International Ratings
“Fitch Ratings 2015”
• Long-term foreign and local currency Issuer
Default Ratings (IDRs) – “BB-" upgraded
from “B+”
• Short-term foreign currency IDR – “B”
• Country Ceiling – “BB”
• Unsecured debt - “BB-“ (In 2010 - “B+”)
• Outlook - Stable
“Standard and Poor’s Ratings 2013”
• Long-term foreign and local currency Issuer
Default Rating (IDR) – “BB-" upgraded from
“B+”
• Short-Term Sovereign credit ratings – ‘B’
• Transfer & Convertibility assessment – ‘BB’
• Outlook - Stable
“Moody's Investors Service 2015”
• Not-Prime foreign and local currency issuer rating
(affirmed) – Ba3
• Outlook - Positive
Georgia’s Sovereign Ratings
Ministry of Economy and Sustainable Development of Georgia
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