Georgia not ideal for investors

The Georgian government regularly promotes Georgia as an attractive place for investors. However, there was only a slight increase in investments from 2010 to 2011.

In 2011, the government hosted a series of business forums, which took advantage of the instability in the Eurozone. Investors were attracted by low tax rates and the ease of starting a business.

However, critics say the market in Georgia is not totally competitive. There are some sectors that are monopolized, and without extra support from the top they are difficult to enter. There have also been cases of property law violations. The labour force in Georgia is not properly qualified and there are high prices on fuel and electricity. Meanwhile, Georgian legislation is in flux, which creates instability and may cause confusion.