The US State Department recently published a report lauding the investment environment in Georgia, attributing its success to economic stability and progressive reforms undertaken by the nation.

According to the report, the country exhibited positive economic indicators, a swift recovery in the aftermath of the pandemic, and enacted supportive economic policies that have helped it secure impressive standings in international rankings.

Georgia was particularly noted in Bloomberg's 2022 Global Foreign Direct Investment Survey as a preferred destination for investments. In a remarkable feat, Georgia achieved the 13th spot, competing with major global economies such as the USA, China, and Great Britain. The study revealed that a noteworthy 70% of investors who were interested in Georgia held an optimistic view of its economy. This figure markedly outstripped the global average of 55%, highlighting the high awareness of Georgia's investment opportunities among key decision-makers.

According to the State Department's analysis, Georgia boasts an exceptional investment climate, outperforming other countries in its region and emerging as the regional leader.

The report underscored Georgia's compliance with international sanctions, emphasizing that the country's National Bank and other financial institutions fully adhere to the financial sanctions imposed on the Russian Federation by the USA and other nations. In a bid to ensure effective enforcement of sanctions, a new department was established within the National Bank. This department oversees and coordinates the implementation of international sanctions and aids representatives of the financial sector in understanding and complying with the sanctions regime.

Moreover, the National Bank maintains a close collaboration with counterpart institutions in the USA and the United Kingdom, such as OFAC, OFSI, and relevant bodies of the European Union.

The report highlighted the impactful reforms targeted at enhancing the business climate in Georgia, particularly the new insolvency law, titled the Law on Rehabilitation and Collective Satisfaction of Creditors, which came into effect on April 1, 2021. This law aims to safeguard creditor interests, encourage rehabilitation mechanisms, enhance the court's role in insolvency proceedings, and delineate the rights and responsibilities of all involved parties. These measures have simplified the recovery and growth of companies facing economic challenges.

The State Department also recognized Georgia's new energy legislation, which fosters local and foreign investments in diverse energy economic activities and the use of sustainable and alternative resources.

The report further cites Georgia's relatively low labor costs as a major draw for foreign investors. Additionally, Georgia's strategic location as a regional transport hub linking Asia and Europe, and its free trade policies, make it an appealing choice for companies seeking easy access to foreign markets.

The State Department's report also touched on the subject of state procurement in Georgia. It praised the country's transparent electronic system of state procurement, which incorporates a significant portion of the public sector.