Economy takes over in the US-Georgia relationship
06 March, 2014
Economy takes over in the US-Georgia relationship
The recent visit of Georgian PM Irakli Gharibashvili to the US is a breakthrough that marks the launch of a new economy-oriented policy of the US to Georgia – this is the estimation trumpeted by an overwhelming majority of Georgian economic analysts. They predict a higher than expected inflow of investments in Georgia as a result of the positive signals sent by the White House. Also, the Georgian business climate is believed to improve at faster speed once prompted by
the US and the EU alike, as both are interested in the stability and economic welfare of the country more than ever.
The Ukrainian upheaval and its lamentable consequences had a cold shower effect on the West. It understood more than ever how unpredictable Russia can be on meddling in the post-Soviet neighbors’ affairs, and how heavy the result of such interference may be if the neighbor countries strive to the West and EU integration. The direct consequence of this awakening had a positive impact on Georgian PM’s visit to the US. Instead of a relatively small-scale meeting between the ex-president of Georgia and the US political elite, Gharibashvili was accepted by unprecedented large-scale meetings with representatives of all governmental branches including the White House, State Departments and the Capitol, and President Barak Obama himself. The Georgian governmental delegation met with over 30 of the most influential US politicians and secured sustainable and enhanced US support in economic, trade and security issues of Georgia. The leading Western publications made a positive acclaim of Georgian PM in lieu of the previously unfavorable dominated coverage largely questioning the new governmental policy of Georgia. But of paramount importance was the focus shift from the previously dominated defense issues on the economic reforms and trade partnership, Giorgi Abashishvili, an associated professor of economy at the Ilia State University, admits. “This kind of high level interest of the US to Georgian authority is a signal to all investors worldwide think of long-term investments in Georgia whose investment image was somewhat shattered after the 2008 August war,” Abashishvili said in an interview with Georgian Journal. “As a matter of fact, in the 22-year long history of Georgian-US relationships after Georgia’s independence, this is the first time such a big focus fell on a larger trade and economic partnership.”
Abashishvili underlines that this economic relationship will be based on the US-Georgia Chart on Strategic Partnership concluded in 2009 that envisages cooperation in economy, trade and energy sectors and eventually aims at economic growth of Georgia, encourages economic reforms and a liberal approach in business. According to the Chart, the US will support the South Corridor energy corridor promotion in Georgia, also its integration into the global market competition where Georgia still holds a weak position. The US declarations to enhance mutual investments with Georgia may be a vigorous stimulus to restore Georgia’s August-war-affected investments image. The upcoming prospects of free trade with the US, as built in the Chart, and the EU [where the said agreement will be signed in August this year] is an extra way to lure potential investors who think of the sales market first of all.
Ditrikh Muller, co-founder of Georgian Investment Group+, believes the recent visit to the US and highly positive acclaim of the international press on Georgian PM marks a breakthrough in the lukewarm approach of the West to Georgia after a new power came in office. He conjectures that after the Ukrainian tragedy the West understood how easily Russian-oriented forces may manipulate a poor population and use discontent toward the authorities into destabilization, handy for Russia alone. Therefore, the West will be accentuating economic reforms in Georgia to bottom out the poverty and be less vulnerable to manipulations.
“Once nobody wants Russia to be dominating the region again, Georgia, that keeps itself resilient to Russian pressure as of yet, will be a pet project to the west showing the benefits of western integration. I presume that after these events the US and the EU will build on such benefits to Georgia that they did not plan before. The stagnated economic reforms of Georgia will get a new impetus, Georgian authorities will be under supervision to improve its investment climate and lay the foundations to a really democratic economy in Georgia,” Muller said.

Other Stories
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Inovative and reliable online shop in Georgia -
Status of Georgia as a business and tourism interesting country is growing from year to year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
Georgia second among the fastest growing tourist destinations in Europe
Georgia is among the fastest growing tourist destinations in Europe. The data is published by the UN World Tourism Organization.
Bitmain launches world digital mining summit in Tbilisi, Georgia
Bitmain CEO Jihan Wu and Roger Ver, CEO of Head Speaker List featuring Circle, and Genesis Mining when Digital Mining Leaders Convene In Tbilisi on September 21-23
TBC Bank and Gazelle Finance have teamed-up to support Medical City, a leading healthcare provider in the western region of Georgia to launch the Western Regional Center Of Modern Medical Technologies.
Equiavlent to buried treasure – resources that are underused in Georgia
For 2018 the IMF Commission has forecast an annual economic growth for the Georgian economy of about 5,5%.
Does the quality of Georgian wine increase and how the export affects it
If we look at the data collected about modern Georgian wine, we will find out that the Georgian wines produced between 2015-2017 are much better in terms of their quality and Oenologic features rather than the wines produced between 2009-2011.
Japan simplifies the visa requirements for Georgian citizens
Diplomatic and economic relations between Georgia and Japan are now moving to a new phase. Recently Japan has decided to simplify the visa requirements for Georgian citizens.
M&S (Marks and Spencer) and H&M collections to be produced in Georgia
Garments manufacturer MGMTEX will start production of the M&S and H&M trendy collections from this September.
The World Digital Mining Summit to be held in Georgia
The summit is scheduled to take place between 21st-23rd September in the Hualing Hotel, Tbilisi, Georgia.
Galt and Taggart - Tourism Boom Continues in Georgia
Tourism has become one of the key drivers for the Georgian economy. Galt and Taggart has recently published research about the Georgian tourism sector in the first half of 2018.
"The worst dream for Putin is that Russians want to live in Georgia"
This year, visitors to the Adjara region would notice that there is a boom in construction in and around Batumi.
Underground gas storage facility to be built in Georgia
KfW, a German government-owned development bank signed a EUR 150 million promotional loan with the state-owned Georgian Oil and Gas Corporation (GOGC) for the construction of the first underground gas storage facility in Georgia.
New gambling rules for Georgia
Georgian lawmakers are preparing a new draft law relating to online-casinos and gambling that will seek to curb gambling addiction in Georgia.
How expensive is it to visit Georgia?
The Georgian Lari (GEL) is the official currency of Georgia and is the only legal means of payment in the entire territory of Georgia.
Trade with the EU and the Commonwealth of Independent States (CIS) has grown significantly
Trade with the EU and the CIS has grown by 26% and 33.5 % respectively, says GeoStat, the Georgian National Statistics Office.
The unemployment rate decreases in Georgia
The unemployment rate decreased in Georgia by 1,9% and amounted to 12.1% in the 2nd quarter of 2018 compared with the previous quarter,
Memorandum of Understanding to be signed between Georgia and Malaysia
According to the Georgian Ambassador to Malaysia Nikoloz Apkhazava, Georgia plans to sign a Memorandum of Understanding (MoU) with Malaysia.
“Blauenstein Georgia” due to expand in Georgia
“Blauenstein Georgia” is planning to open more shops in Georgia. It is an agriculture company that sells meat products, meat and convenience food.
The amount of Direct Foreign Investment rises in Georgia
According to the information of the National Statistics Office of Georgia, the amount of direct foreign investment in Georgia has risen
It’s going to get  harder for foreigners to get residence permit in Georgia
It’s going to get harder for foreigners to get permit of residence in Georgia.
Exchange Rates
GEL Exchange Rate
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
November 2018
Mon Tue Wed Thu Fri Sat Sun
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30