Georgia Improves Position in Global Competitiveness Report 2018

Georgia has advanced its position by one point and is ranked 66th among the world’s 140 economies assessed in the Global Competitiveness Report 2018, an annual report published by the World Economic Forum.

The report maps the competitiveness of 140 economies through 98 indicators organized into 12 pillars. For each indicator, using a scale from 0 to 100, it indicates how close an economy is to the ideal state or frontier of competitiveness.

When combining these factors, Georgia has 60.9 points, improving its position by one point and preceding such countries as Ukraine, Moldova, Croatia, Albania and Montenegro.

Of the regional states, Georgia is ahead of Azerbaijan (60 points) and Armenia (59.9) but comes after Turkey (61.6) and the Russian Federation (65.6 points).

According to authors of the research, Georgia is the leader in the Eurasia region with respect to transparency.

As for the best ten economies, the United States is the closest economy to the frontier of obtaining the perfect score on every component of the index. With a competitiveness score of 85.6, it is 14 points away from the frontier mark of 100, implying that even the top-ranked economy among the 140 has room for improvement. It is followed by Singapore (83.5) and Germany (82.8). Switzerland (82.6) comes in at 4th place, followed by Japan (82.5), Netherlands (82.4), and Hong Kong SAR (82.3). The United Kingdom (82.0), Sweden (81.7) and Denmark (80.6) round out the top ten countries listed in the report.

Ekaterine Mikabadze, Deputy Minister of Economy and Sustainable Development of Georgia, says while creating a Global Competitiveness Index, the World Economic Forum uses business survey methodology. Therefore, it is important that the report relies not only on information about beginning and operating a business... but also on the right to privacy and safety.

She noted significant improvements were observed in the 2018 ranking, in particular the 12 ratings Georgia has improved scores in, in eight directions.

“It is noteworthy that Georgia has one of the highest ratings in terms of safety and it is on the 29th position among the 140 countries with 86.3 points. This direction comprises four components and Georgia's scores have improved in all four directions,” she said.

Business Ombudsman Irakli Lekvinadze said that Georgia's advanced position in the rating indicates the country's growth in competitiveness.

“The main priority that Georgia has in comparison with the other regional states is low bureaucracy and low taxes. Free trade agreements with the European Union, China and other countries give Georgia a significant advantage in the doing business process,” he said.

By Thea Morrison

Image source: The Guardian

18 October 2018 22:14