weighted score 4.7 · ten dimensions
Sourcing Attractiveness Index · ten dimensions
Georgia
Labour cost, supply base depth, logistics infrastructure, trade access, and innovation scores for Georgia as a sourcing destination.
Labour cost competitiveness
7
Low labour costs relative to EU and regional peers. Minimum wages well below Eastern European levels, making light manufacturing and agriculture cost-competitive.
Supply base depth
3
Limited manufacturing base. Supply chains concentrated in agriculture, wine, hazelnuts, and basic food processing. No significant industrial supplier ecosystems.
Logistics & infrastructure
5
Black Sea ports at Batumi and Poti provide EU connectivity. Road infrastructure improving but mountain terrain constrains overland routes. Rail links to Azerbaijan and Turkey operational.
Workforce skills
5
Literacy rate high. Technical skills concentrated in IT services and agriculture. STEM graduate pool small relative to population. English proficiency improving in younger demographics.
Scalability
7
EU DCFTA (2016) provides preferential tariff access to the EU single market — a major scalability advantage. Compliance with EU SPS and technical standards is a precondition for using DCFTA preferences.
Ease of doing business
6
Historically top 10 on World Bank Doing Business. Streamlined registration, low administrative corruption, simplified tax system. Recent political developments create some uncertainty.
Trade access & tariffs
4
EU DCFTA provides strong EU market access. Limited FTA coverage beyond the EU. Standard MFN tariffs apply for non-EU destinations.
Sustainability baseline
4
Environmental regulation developing under EU approximation. Renewable energy potential (hydropower) significant but grid infrastructure needs investment. ESG audit ecosystem nascent.
Innovation & IP
2
R&D investment low as a share of GDP. Patent filings minimal. Innovation ecosystem concentrated in Tbilisi tech startups. IP framework improving under EU alignment but enforcement capacity limited.
Quality standards
4
Food safety standards improving under EU DCFTA alignment, with HACCP adoption expanding. Wine appellation system developing. Industrial quality certification limited outside food sector.
Trade Access & Agriculture
Trade Access & Agriculture
- EU DCFTA
- Georgia signed a Deep and Comprehensive Free Trade Area with the EU in 2016, granting preferential access to EU markets for goods meeting EU technical and sanitary standards. This underpins the Scalability score of 7 — a significant advantage for a country of 3.7 million people.
- Wine tradition
- Georgia has an 8,000-year winemaking tradition and is developing its appellation system. Wine, hazelnuts, and mineral water are key agricultural exports. The EU DCFTA provides tariff-free access for most agricultural products meeting SPS requirements.
- Black Sea ports
- Batumi and Poti are Georgia's primary commercial ports on the Black Sea, providing connectivity to Turkey, Romania, Bulgaria, and onward EU markets. Port capacity is modest but adequate for current trade volumes.
Business Environment & Workforce
Business Environment & Workforce
- Doing Business ranking
- Georgia was historically ranked in the top 10 globally on the World Bank Doing Business index, reflecting streamlined business registration, low corruption at the administrative level, and simplified tax procedures. Ease of doing business score is 6.
- BRI middle corridor
- Georgia sits on the Belt and Road Initiative middle corridor connecting China to Europe via Central Asia, the Caspian Sea, and the South Caucasus. This positions Georgia as a potential logistics hub, though volumes remain modest.
- Population & EU candidacy
- Georgia has a population of approximately 3.7 million. The country received EU candidate status in December 2023, but this was effectively frozen following the adoption of the controversial 'foreign agents' law in 2024.