Economic Freedom Index in Georgia

Economic Freedom Index in Georgia

The Economic Freedom Index is based on the Heritage Foundation's annual Index of Economic Freedom, measuring on a scale of 0–100 the degree to which an economy embraces free markets, property rights, rule of law, and limited government intervention. Georgia scored 69.6/100 in 2024 and was classified as "Moderately Free" –. This is the best result in the Caucasus region, placing Georgia on par with established EU economies.

The Reform Success Story

Georgia's economic freedom score is the result of a radical reform program unparalleled in the post-Soviet world. Under the Saakashvili government (2004–2013), Georgia introduced a flat tax of 20%, reduced the civil service by 90%, completely rebuilt the police force, slashed tariffs, and reduced company formation time to one day. The Transparency International CPI score climbed from rank 133 (2003) to rank 49 (2012) – one of the most dramatic anti-corruption improvements recorded.

Four Core Dimensions

• Rule of Law (76/100): Property rights well-protected; judiciary increasingly independent but still vulnerable to political influence.
• Government Size (89/100): Low taxes (20% flat), minimal government spending as a share of GDP, virtually no subsidy distortions – one of the strongest scores worldwide.
• Regulatory Efficiency (76/100): Company formation in one day, low bureaucratic burden, liberal labor code. Regularly Top-10 in World Bank Doing Business.
• Open Markets (62/100): Relatively open trade regime, deep DCFTA with EU (2014), but some sectors remain oligopolistically structured.

Conclusion: With a platform score of 70/100 and a Heritage Foundation score of 69.6 ("Moderately Free"), Georgia is a genuine outlier in its geographic region – demonstrating that ambitious reforms can achieve transformative results even in small, resource-poor nations. For economically liberal expats and entrepreneurs, this score is a powerful signal.

Created: 2026-04-14