Georgia since 2012 has held five successive peaceful and broadly competitive elections. Extra-constitutional or violent government change remains unlikely. However, the dominance of Georgian Dream – Democratic Georgia (GD-DG) and increasing concern about the erosion of political transparency has generated regular anti-government protests since mid-2019 and a growing threat of destabilising tensions between the government and opposition. The government and all major political parties are firmly pro-business. GD-DG has established itself as the dominant party after winning the last three parliamentary elections. While international observers judged the most recent elections in October 2020 to be mostly fair, widespread accusations by local observers of voter intimidation by GD-DG and counting irregularities led all elected opposition parties to boycott parliament and to call for an election re-run. Talks between the opposition and government are under way as of late 2020 and some opposition parties are likely to ultimately take up their seats. However, the development will undermine the checks and balances on the GD-DG government and demonstrates the increasing fragility of Georgia’s democracy.

The main opposition party in the country is United National Movement (UNM). It has a loyal voter base, but is unpopular with much of the population due to high-profile controversies over abuse of power when in government before 2012.

Relations with Russia remain difficult but have improved under successive GD-DG administrations since 2012. Georgia in February 2017 finalised a visa-free agreement with the EU, but EU membership remains a distant prospect.

Georgia is considered an hybrid regimen according to the 2020 Democracy Index developed by The Economist Intelligence Unit (EIU), where the country ranks 89 out of 167 countries scored. The country ranks 61 at the 2020 Human Development Index developed by the United Nations Development Programme. 

Moreover, the country ranks 60 out of 180 in the 2021 World Press Freedom Index elaborated by Reporteers Without Borders (RFS). 

The operating environment is relatively straightforward for foreign businesses to navigate. Administrative processes are clear and streamlined, including to set up a business or obtain licences. Georgia has prioritised reducing bureaucracy and red tape in the past decade. In the World Bank’s Doing Business surveys, it has been among the top improvers worldwide on four occasions since 2004, and ranked 7th out of 190 countries in the 2020 survey. The country performs favourably in categories such as starting a business, creating a one-stop shop for construction permits, protecting minority investors, streamlining processes for registering property and introducing an electronic system for paying taxes. The National Investment Agency acts as an effective moderator between foreign investors and the government.

The main components of the labour market – a qualified labour force, professional retraining centres and trade unions – remain underdeveloped. Unemployment is a major issue: the unemployment rate is officially around 12%, but in reality likely to be much higher, especially since the COVID-19-related economic slowdown in 2020. A lack of specific professional skills means that the workforce is inflexible and often cannot satisfy modern employability standards. However, increasing numbers of people are obtaining professional training overseas and improving their language skills. The government has also started to implement vocational training programmes. Trade union and labour movements are present but not very active. Labour action, such as protests and strikes, is infrequent and rarely impacts business operations.

Infrastructure is broadly adequate for business needs, but not up to the standards of most Western European countries.

Overall, Georgia ranks 7 out of 190 countries scored at the 2020 Doing Business Index by the World Bank and 45 out of 198 at the 2020 Corruption Perception Index by the Transparency International Organization.

A renewal of the 2008 inter-state conflict with Russia remains a low-level threat, and one that is unlikely to materialise in the next two years. Petty crime presents the main security threat to foreign personnel. Organised criminals, while active, are unlikely to affect legitimate businesses. There is a low-level threat of an Islamist extremist-inspired terrorist attack, but this is mitigated by the authorities’ robust and improving counter-corruption capabilities. Protests by political parties and citizens take place regularly. Businesses face an incidental threat from isolated violence at these events, but wider unrest is unlikely.

The security environment in the breakaway territories of Abkhazia and South Ossetia is worse compared with the situation in Georgia proper. Unexploded ordnance and landmines are situated in and around South Ossetia, the site of the 2008 war between Georgia and Russia. Bombings and shootings targeting political figures and public offices in Abkhazia are relatively frequent. However, these do not fall under the definition of terrorism owing to the fact that they are the result of inter-clan rivalries.

Overall, Georgia ranks 95 out of 163 within the 2020 Global Peace Index by the Institute for Economics and Peace.

Georgia is not currently among the most cyber-attacked countries in the world according to Kaspersky cyber threat map.

No vaccinations are required to enter the country.

Georgia ranks 72 out of 195 within the 2019 Global Health Security Index, a project of the Nuclear Threat Initiative (NTI) and the Johns Hopkins Center for Health Security (JHU), developed with The Economist Intelligence Unit (EIU).

The country is also periodically struck by floods. In June 2015, a flood killed more than a dozen people around Tbilisi. Landslides can also occur following heavy rain, especially in the more mountainous regions of the country. Moreover, there is likelihood of earthquakes.