Business Climate in Georgia: The World Bank Recognizes the Country as One of the Best for Doing Business

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Georgia entered the group of global leaders in terms of business conditions, ranking 4th in the World Bank’s assessment among 101 countries. The results of the study reflect an evaluation of the effectiveness of the business environment, the quality of regulation, and the performance of public institutions across all stages.

Georgia’s Position in Global Business Climate Rankings

The new Ready for Business (B-READY 2025) ranking analyzes the entire life cycle of a company — from starting a business to its closure. Georgia shared fourth place with South Korea, Singapore, and Estonia. As a result, the country outperformed a number of developed economies, including the United Kingdom, Spain, Canada, the United States, the Czech Republic, Croatia, and Latvia.

The report separately notes that Georgia ranked second globally in terms of operational efficiency, behind only Singapore. This indicator reflects the speed of procedures, administrative burden, and the effectiveness of interaction between businesses and public authorities. The government emphasizes that further improvement of the business climate remains one of the key priorities of the country’s economic policy.

Deputy Minister of Economy and Sustainable Development of Georgia Vakhtang Tsintsadze noted that the high ranking confirms the resilience and competitiveness of the country’s business environment. According to him, the results reflect systematic efforts to create favorable conditions for investors and entrepreneurs.

Replacing Doing Business

The new Ready for Business (B-READY) ranking was launched by the World Bank to replace the former Doing Business index, with a focus not only on formal regulations but also on how the business environment functions in practice. The methodology considers how rules are applied in reality, including administrative procedures, interaction between businesses and the state, and the quality of public services, allowing the business climate to be assessed in practical rather than declarative terms.

The transition to the B-READY format became the World Bank’s response to previously identified methodological limitations of Doing Business. The new approach is designed to provide a more comprehensive and transparent assessment, with a stronger focus on institutional quality and regulatory effectiveness, which, according to the authors of the methodology, reduces the risk of data distortions.

Georgia’s high position in the new ranking fits into the country’s long-term trajectory. In previous editions of Doing Business, Georgia consistently ranked among the world’s top ten economies, indicating continuity of results and the preservation of competitive advantages in the business environment under the updated assessment tool.

World Bank rankings, including B-READY, are used by international financial institutions, analytical centers, and investment platforms as benchmarks when assessing investment climates and private sector potential, including in Eastern Europe and the Caucasus.

Year in review

Prime Minister of Georgia Irakli Kobakhidze noted that 2025 was a successful year for the country. Georgia managed to preserve peace and stability and improve the system of public administration. Improper practices were eliminated across various areas, including direct privatization, which has been almost completely discontinued. All state-owned assets were put up for auction, allowing the state to maximize revenue. Significant changes also affected public procurement, where an electronic platform was introduced, increasing transparency and reducing corruption risks.

The Prime Minister separately highlighted the work of the government administration’s efficiency department. As a result of monitoring and advisory activities, the state saved 292 million lari, with an additional approximately 100 million lari saved through the cancellation of unjustified procurements.

In 2025, the country achieved strong economic results. Over ten months, economic growth reached 7.6%, and the full-year figure is expected to remain at this level, exceeding the revised forecast of the International Monetary Fund. The size of the economy will exceed 100 billion lari for the first time, reaching approximately 104 billion lari. GDP per capita will surpass $10,000, and in purchasing power parity terms — $30,000.

The revenue side of both the consolidated and state budgets was executed at more than 100%. External debt was reduced to 34% of GDP, down from more than 60% in 2020. The national currency remained stable, and foreign exchange reserves are expected to exceed $6 billion by year-end.

What this means for investors

Analysts at International Investment note that the combination of Georgia’s high ranking in the new World Bank assessment and its 2025 macroeconomic indicators sends investors a signal not of a one-off success, but of a sustained improvement in the business environment. The country demonstrates competitiveness in operational efficiency and institutional quality on par with developed economies, reducing regulatory and administrative risks and increasing the predictability of business rules.

An additional factor supporting investment appeal is the stability of the financial system, reflected in sustained economic growth and a declining debt burden. Taken together, these parameters allow Georgia to be viewed as a jurisdiction with a comfortable market entry and a platform for effective investment strategies.