Category Archives: Heritage Foundation
Georgia’s economic freedom score is 70.4, making its economy the 29th freest in the 2011 Index. Its overall score is unchanged from last year, with gains in monetary freedom largely cancelled out by increased government spending. Georgia is ranked 15th out of 43 countries in the Europe region, and its overall score is higher than the world average.
The Georgian economy has maintained its status as a “mostly free” economy in the 2011 Index. Notable reforms in Economic Freedom Score business freedom, trade freedom, fiscal freedom, and labor freedom have spurred economic development in recent years. Despite a sharp contraction due to the Russian invasion and the global recession, the economy has averaged 4.8 percent annual growth over the last five years.
Georgia is well positioned to resume economic expansion. The business environment is supported by a competitive tax regime and an efficient regulatory framework. Reforms in public financial management are ongoing. Corruption weighs heavily on overall economic freedom, but anti-corruption measures since 2003 have made some progress.
2010, Washington DC
For over a decade, The Wall Street Journal and The Heritage Foundation, Washington’s preeminent think tank, have tracked the march of economic freedom around the world with the influential Index of Economic Freedom. Since 1995, the Index has brought Smith’s theories about liberty, prosperity and economic freedom to life by creating 10 benchmarks that gauge the economic success of 183 countries around the world. With its user-friendly format, readers can see how 18th century theories on prosperity and economic freedom are realities in the 21st century.
Georgia’s economic freedom score is 70.4, making its economy the 26th freest in the 2010 Index. Its overall score is 0.6 point higher than last year due to improvements in trade freedom, property rights, and freedom from corruption. Georgia is ranked 14th out of 43 countries in the Europe region, and its overall score is higher than the world average.
With impressive progress toward greater economic freedom, Georgia for the first time has achieved “mostly free” status. This is particularly justified by high ratings in business freedom, trade freedom, fiscal freedom, and labor freedom. With its strong commitment to economic reform, Georgia has revitalized its historic tradition of entrepreneurship.
The economy has recorded high growth rates averaging over 8 percent over the past five years but experienced a sharp contraction in 2008 due to the Russian invasion. Georgia is well positioned, however, to restart its economic expansion; growth should be facilitated by a competitive tax regime and efficient regulatory framework. Although corruption is still a significant hindrance to overall economic freedom, anti-corruption measures since 2003 have made notable progress.
Georgia’s world rank: 26 of 183, regional rank: 14 of 43