The Tbilisi Silk Road Forum is held under the patronage of Prime Minister Irakli Garibashvili. The Tbilisi Silk Road Forum is being held for the fourth time. It is a large-scale event of international importance bringing together over 2,000 delegates from about 60 countries. The forum’s key theme this year is connectivity. The Tbilisi Silk Road Forum was founded by Georgian Prime Minister Irakli Garibashvili in 2015.

The Prime Minister underlined that Georgia – positioned as a natural bridge at the crossroads of Europe and Asia – is transforming day-by-day into a multi-dimensional regional hub.

“My Government has invested significantly in modernizing infrastructure, enhancing connectivity and fostering efficient trade routes.

The Middle Corridor across Georgia is fast emerging as a stable and secure alternative to traditional routes. It has already become one of the shortest and most reliable East-West transportation options. Currently, we are closely working with our Azerbaijani and Kazakh colleagues to eliminate bottlenecks by improving infrastructure capacities, simplifying procedures and applying unified tariff policy.

Georgia’s Free Trade Agreements with the EU, EFTA and CIS countries, China, Türkiye and the UAE further enhance our emerging status as a regional hub. These agreements already provide investors with access to vast markets, yet the economic policies of our Government additionally encourage investors to expand their businesses in Georgia and take advantage of our access to a 2.3 billion consumer market. Negotiations with Israel and South Korea are underway as well.

Over the past decade, we have succeeded in making Georgia one of the best places in the world to do business. Of note, Georgia has one of the lowest tax rates in the world. Based on the World Bank, Georgia is 3rd least tax burden country with the total tax rate of 9.9%. Further, based on the most recent World Bank’s Ease of Doing Business report (2020), Georgia is 7th easiest country to do business globally.

Georgia also offers a compelling value proposition for investors as we have created a model in which retained earnings are exempt from the Corporate Income Tax (CIT). Further, Georgia has four free industrial zones. Enterprises operating in these zones and manufacturing goods for export are exempt from taxes. All of these contribute to Georgia’s position as an attractive destination for doing business.

Today, Georgia serves 8 landlocked countries as a gateway between Europe and Asia. For European businesses, Georgia offers entry not only to the South Caucasus, but also to Central Asia and China. As Europe’s overland entry/exit point to Asia for trade, commerce and energy, we offer international firms a competitive environment that will reduce their operational costs.

Recently, Georgia and China elevated ties to the strategic partnership level, which boosts our role as a link between the continents, fostering greater connectivity and economic collaboration. Our Strategic Partnership with China is important for Georgia’s economic development and stability, and its key role as a bridge between Asia and Europe.

At the same time, Georgia’s strategic location is pivotal for Asian businesses and investors. Georgia offers access to the European market while simultaneously providing a platform for broadening their customer bases in our neighborhood.

Dear Friends, the fundamental philosophy of my Government – as I said – is to maintain peace and stability, and to ensure predictability and economic prosperity. Despite complex challenges and the COVID-19 pandemic, we have managed to achieve remarkable economic growth. Georgia’s economy rebounded with a double-digit growth rate of 10% in 2021 and 2022. My government has maintained this positive-growth trend in 2023, with an average economic growth rate of 7% in the first eight months and with inflation rate less than 1%. According to IMF projections, Georgia is expected to remain as one of the fastest-growing economies in the medium term.

We have attained the upper-middle-income status and increased GDP per capita to more than USD 8000 expected at the end of 2023. At the end of next year, this figure will reach USD 8700. In just three years, GDP per capita has nearly doubled.

Our growth in 2022-2023 was broad based, with real growth in key sectors, including transportation, information and communication, construction, trade and other services. We anticipate that this positive trend will continue. In addition, our official reserve assets reached a historic high in July. The unemployment and poverty rates are also at historical lows.

Georgia’s record of prudent macroeconomic decisions and well-founded structural reforms drive our strong economic performance.

It is no coincidence that some of the most reputable financial organizations place Georgia among the world’s most successful, high-ranking countries. Transparency and accountability form the cornerstone of Georgia’s governance. Our persistent commitment to these values is mirrored in numerous prestigious rankings.

The World Justice Project’s 2023 Rule of Law Index places Georgia as the top ranking country in the Eastern Europe and Central Asia regions regarding the rule of law. Georgia is the top-ranked nation for state budget transparency. In the World Economic Forum’s Global Competitiveness Report, Georgia has outpaced many EU and NATO countries in Government Effectiveness. According to the Fraser Institute’s report – Economic Freedom of the World 2023, Georgia is among the top 25 countries with the freest economies. The Heritage Foundation Index of Economic Freedom 2023 ranks Georgia 21st in Europe, ahead of 11 EU member states and 35th globally. Last but not least, the Crime Index 2023 positions Georgia as one of the safest countries in the world, ranking 8th in Europe and 18th in the world.

In addition to these outstanding results, Fitch Ratings affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at BB with a Positive Outlook in July 2023.

Neither strengthening of the economy nor the development of the regional hub is feasible without proper planning and a resolute commitment to democratic values. That is why, last year, we adopted Vision 2030, a development strategy of Georgia, which is a comprehensive national policy document that guides the country’s policy planning and coordination. It outlines key objectives and priorities for nationwide development by 2030, aligned with the UN Sustainable Development Agenda 2030 and the EU-Georgia Association Agreement. The Strategy aims at promoting sustainable economic growth, social equality, security and stability, democracy and rule of law in Georgia.

Macroeconomic stability, institutional strength and economic growth-oriented reforms provide a solid background for further improving the investment environment and enhancing private sector competitiveness. Georgia also enjoys support from international financial institutions, ensuring policy credibility and a reduced risk environment for investors.

Our vision is to become a forward-looking location of choice for responsible wealth and business-owning individuals and their families seeking to protect and diversify their assets internationally. The key driver to implement this vision is the development of a knowledge-led ecosystem, always keeping in mind the general welfare and prosperity of our people. This ecosystem will build on Georgia’s existing strengths, institutions and culture, as well as its already impressive international reputation as reflected by our country’s position in different international indices for the ease of doing business, governance or rule of law.

Dear Friends, to augment our position as a regional hub, my government is heavily investing in large-scale infrastructure projects. The development of port infrastructure, including the Anaklia Deep Sea Port, is a priority to ensure our competitiveness as a maritime nation. This green-field PPP project will create a state-of-the-art deep-sea port on the Eastern coast of the Black Sea. Upon completion of all phases of development, the Anaklia Deep Sea Port is expected to have the capacity to handle 100 million tons.

Georgia is ready to play its crucial role as a regional hub of energy transit, freight transportation, and digital interconnections. We have initiated several high-profile projects of strategic importance that carry a global impact in addressing energy security and climate change.

The Black Sea Submarine Electricity Cable promises to unlock transit opportunities and green energy trade between the EU and the South Caucasus through Georgia while promoting renewable energy, including hydrogen production. A strategic agreement, signed in December 2022 in Bucharest by the leaders of Georgia, Azerbaijan, Hungary and Romania, forms a solid foundation for this energy partnership and project, which the World Bank already considers as economically viable. We expect to have a completed full-scale feasibility study of the project in 2024.

In parallel with the submarine electricity cable, a Black Sea Underwater Fiber-Optic Cable will directly link South-East Europe with the South Caucasus and beyond, providing Georgian citizens and that of the wider region with faster and more stable internet connectivity.

Additionally, intensified ferry-feeder services in the Black Sea, connecting Georgia to Romania and Bulgaria, will enhance international transportation, particularly along the Middle Corridor. Digitalization of transport routes in the Black Sea is the next crucial step in this corridor’s development.

Georgia has launched significant infrastructure initiatives, including the ambitious Railway Modernization Project. Upon its completion by the end of 2024, the throughput capacity of Georgian railways will double. To support Georgia’s position as a hub for trade and logistics, the Government also invests in constructing the East-West highway and the Baku-Tbilisi-Kars new railway line both to be completed at the end of 2024.

My government is also improving air connectivity by building a new international airport in Tbilisi that will serve as a world-class transportation center, cementing Georgia’s status as a prominent player in global aviation.

In recognizing the challenge of meeting the increasing demand for energy and addressing global climate change, we are actively pursuing new ventures in renewable energy, including hydropower, wind, solar and other sustainable sources. Our objective is to attract investors to establish innovative power plants, utilizing Georgia’s abundant green energy potential.

Dear Friends, all of these transformational projects will bring additional jobs, economic growth and prosperity to our people and the region at large. In addition, these projects reflect our commitment to European integration.

We continue to move forward on our EU membership path. Joining the European family of nations has always been a civilizational decision of Georgians. The remarkable achievements of our Government, including the EU Association Agreement, Free Trade Agreement with the European Union, Visa-Free Regime and European Perspective last June demonstrate our geopolitical priority to become an EU member state.

This year, we expect a far-sighted – I would say – and fair decision from Europe concerning Georgia’s EU candidate status in a well-deserved recognition of the joint efforts of my government and our people. I want to emphasize that Georgia has a rightful place in Europe – Georgia deserves the EU candidate status! We are optimistic that the European Commission’s upcoming assessment of Georgia’s progress will clear the way for a favorable decision on the candidate status at the end of this year. 

Dear Friends, as we look ahead, our ambition is to further harness our country’s potential to ensure that Georgia takes its place as a key commercial and financial hub and continues leading the region in technology and education. My Government will diligently work to sustain Georgia’s economic growth momentum, attractiveness to investors and job creation.

In conclusion, let me state that Georgia has achieved transformational success as one of the fastest-growing economies and most stable business environments. While we still have more work to do, we are resolute on our development path. We remain committed to maintaining peace, stability and prosperity for our people, ensuring progress and building long-lasting partnerships" - stated he.