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Economic Development / ეკონომიკური განვითარება

 

The economic cooperation between the European Union and Georgia is very strong. The EU’s aim is for Georgia to be a strong, prosperous and independent partner, empowered to offer its citizens better opportunities. As Georgia moves forward on the EU enlargement path, economic integration between the EU and Georgia will continue to grow as Georgia approximates its legislation, laws and standards to those of the EU.

Since 2014, the Deep & Comprehensive Free Trade Area (DCFTA) gradually opened up the EU market for Georgian businesses and products. The EU is Georgia’s main trading partner.

The EU also supports Georgia with concrete investments through the Economic and Investment Plan (EIP), in line with the EU’s Global Gateway strategy. Under the EIP, the EU has leveraged €2.1 billion in public and private investments to strengthen digital, energy, and transport connections in Georgia and between Georgia and the EU. These investments are aimed to increase trade flows and economic opportunities and ensure more secure and lower-priced energy supplies. Under the EIP, EU flagship initiatives have also supported more than 100,000 small and medium sized businesses (SMEs) to reap the full benefits of the Deep and Comprehensive Free Trade Area (DCFTA).

SMEs are the backbone of the Georgian economy. In 2022, they accounted for 52.8% of the value added by all companies and employed 58.3% of the workforce. Nevertheless, SMEs in Georgia often lack access to finance to fund their transformation or expansion, to knowledge, and to markets. What EU offers includes policy and institutional reform, budget support, financing, grants, sharing of best practices, and market opportunities. Thanks to this support, Georgia is witnessing an increasing number of SMEs – aligned with EU standards – emerging in clusters. These enterprises are empowered to perform better, creating jobs for local people, and with increased outputs. Proposing products and services aligned with EU standards benefits the Georgian population as a whole – employment opportunities are created and the overall economic performance of the country is strengthened. The EU’s support is particularly focused on enabling SMEs to carry out their own green transition – in line with EU standards – and to support businesses led by women.

Learn More about the EU Support to SMEs

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