MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

In the Heritage Foundation 2020 Index of Economic Freedom Georgia’s economic freedom score is 77,1, which is the unprecedented score for the country and makes its economy the 12th  freest in the 2020 Index.

Compared to the previous year, Georgia is advanced by 2 positions in the region and is ranked 6th among 45 countries in the Europe with the mostly free status.

Georgia’s overall score is well above the regional (69,8) and world (61,6) averages.

The 2020 rating assesses the following four areas: Rule of Law, Government Size, Regulatory Efficiency and Open Markets. These four directions, in turn, are comprised of total 12 components.

It should be noted that Georgia has improved its position in 5 important components out of the 12 components of the rating, which include Property Rights (68,6 points), Government Integrity (64,8 points), Judicial Effectiveness (57,9 points), Monetary Freedom (78,3 points) and Fiscal Health (94,4 points).

Georgia gained unprecedented recognition in the Property Rights indicator in 2020, and the country’s rating is 68,6 points. In 2012, the country had only 40,0 points in this indicator.

Georgia improved Government Integrity component by 6,3 which resulted in 64,8 points. Component evaluation is based on the World Economic Forum’s Global Competitiveness Index, the World Justice Index (WJP), the Transparency International Corruption Perceptions Index and the Trace Matrix. This reaffirms the recognition by the international organizations of the absence of corruption in Georgia and the effectiveness of the government.

Monetary Freedom Indicator estimates the inflation rate in the country and estimates the average inflation rate over the last 3 years.

Georgia is ahead of such countries as: Iceland, Netherlands, Lithuania, US, Luxembourg, Finland, Sweden, Czech Republic, Korea, Germany, Norway, Austria, Japan, Qatar, Latvia, Armenia, Bulgaria, Azerbaijan, Russia, Azerbaijan, Russia, More.

The Heritage Foundation’s 2020 Index of Economic Freedom estimates that Georgia’s economy continues its impressive 7-year growth in various areas. Georgian Government has implemented a number of important reforms during the recent years. Multi-year reforms to reduce corruption, cut regulation, and simplify taxes have led to upward movement in all aspects of economic freedom. Over the past 5 years, Georgia’s economy has been growing at a steady pace.

The ranking positively assesses the actions taken to protect the independence of the judiciary system.

It should be noted, that the Economic Freedom Index is mainly based on the sources of international ratings such as the World Bank Doing Business, Global Competitiveness Index (GCI), CPI and the World Justice Index (WJP).