Georgia ranks 12th in Economic Freedom Index 2021
By Nika Gamtsemlidze
Monday, March 8
The Washington-based Heritage Foundation, which has been publishing an in-depth economic freedom index for 27 years, has released its 2021 report. This study evaluates 12 types of freedom in 184 countries around the world.
According to the 2021 Economic Freedom Index published by the Heritage Foundation, Georgia, with a total score of 77.2, is ranked 12th in the world and 7th among 45 countries in the European region.
The 2021 report was discussed by Mamuka Mdinaradze, Chairman of the Georgian Dream, in the parliament. According to him, as the Index shows, the business in the country is free, and the investment environment is very attractive.
“This is a key factor in overcoming the difficult economic crisis caused by the coronavirus because, with the end of the pandemic, Georgia needs to attract additional investment and start new businesses on the road to economic recovery, which will ultimately reduce poverty, increase incomes, employment, and prosperity,” noted Mdinaradze.
The Minister of Economy also talked about the Economic Freedom Index and noted that "we are all together doing a great Gerogian job.” She said that all this “was made possible through the hard work of the country towards transparency, openness to the economy to foreign investors, development of production, and many other aspects.”
Compared to the last year’s index, the country has advanced by improving its score in the ranking's 5 components: judicial effectiveness (59.3 points), tax burden (89.1 points), government spending (76.9 points), fiscal freedom (94.9 points), and trade freedom (76.7 points).
The score awarded to Georgia exceeds the average scores for both Europe and the world as well. For example, the list shows that Georgia is behind only 6 European countries, such as Switzerland, Ireland, Estonia, Denmark, Iceland, and the UK.
In terms of the tax burden, Georgia is among the countries with a low share of the tax burden in GDP, as well as in profit and revenue taxes.
The Heritage Foundation published its annual 2021 Economic freedom Index on March 4, 2021. This report, published for 27 years now, is one of the most reputable and noteworthy rankings in the world. The index includes assessments in 4 key groups in turn consisting of 12 different quantitative and qualitative parameters-to assess economic freedom in 184 countries around the globe.
