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Georgia observed a strong economic growth for the past 5 years after the new government with a liberal reform agenda was elected. Since then, the taxes and customs duties have decreased, procedures for doing business simplified and as a result, more capital started flowing into the country with steady increase of foreign direct investments up to US$ 2,015 million in 2007, a GDP per capita at $2,297 and a real GDP growth of 12.4% in 2007.
Georgia has been a strategic transit route transporting oil and gas from Asia to Europe. More construction is underway for railway to connect Georgia with Europe.
Despite difficult times for Georgia in August 2008, ongoing global financial crisis and talks about recession in leading economies, Georgian market proved to be resilient to external shocks. The banking sector is solid and solvent. Furthermore, donor aid of $4.5 billion is expected to flow to country for this and upcoming years, which will support sustaining economic stability and growth in the country at the time of global distress.
International Financial Institutions have and are still affirming their belief in further growth of Georgian economy. In the World Bank's Doing Business 2009, Georgia ranks 15th for ease of doing business and is a member of top ten reformer countries among world economies; according to the Heritage Foundation in 2008 Georgia holds 32nd place (up from 35th) in the Economic Freedom Index. |