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02.03.2024 (Caucasian Journal). Georgia ranks 32nd among 176 countries in the world, according to the Index of Economic Freedom, compiled annually by the Heritage Foundation, an American public policy think tank. Heritage Foundation evaluates the extent and effectiveness of government activity in 12 areas that have a significant impact on levels of economic growth and prosperity.
Georgia's position is higher than those of its geographical neighbors: Armenia (47th place), Azerbaijan (70th), Türkiye (102th), Russia (131th).
Over the year, the country rose two places in the Index, despite a decrease in the overall score - from 68.7 points to 68.4 points (This, however, is partly due to a global tendency, as the authors of the Index noted: "Regrettably, the global average score for economic freedom has fallen further from the previous year’s 59.3 and is now the lowest it has been since 2001: only 58.6).
Georgia is ranked 19th out of 44 countries in the Europe region. The country’s economic freedom score is higher than the world and regional averages. Georgia’s economy is considered “moderately free” according to the 2024 Index. Armenia and Azerbaijan are in the same category.
"Despite a challenging external and political environment, Georgia’s economy performs quite well in key policy areas. Reforms to enhance regulatory efficiency have been implemented, and open-market policies are maintained along with low tax rates. The economy has demonstrated a high level of resilience. However, institutional weaknesses still require much more committed reforms because marginal reforms have not generated much improvement.", - reads the Index of Economic Freedom.
Armenia’s economic freedom score is 64.9, making its economy the 47th. Its rating has decreased by 0.2 point from last year, and Armenia is ranked 26th out of 44 countries in the Europe region. Like Georgia's, the Armenia's economic freedom score is higher than the world average. However, it is lower than the regional average. "The overall regulatory framework remains efficient, and policies that support open markets are in place. Armenia performs relatively well in many of the four pillars of economic freedom, but the foundations of economic freedom are not strongly sustained by an independent judiciary. Lingering corruption undermines opportunities for more vibrant economic development", according to the Index.
Azerbaijan’s economic freedom score is 61.6, making its economy the 70th
freest in the 2024 Index of Economic Freedom. Its rating has increased
by 0.2 point from last year, and Azerbaijan is ranked 34th out of 44 countries
in the Europe region. Like the case of Armenia, Azerbaijan's score is higher than the
world average but lower than the regional average. "Wide-ranging reforms have led to measurable progress in economic modernization and diversification, improving Azerbaijan’s overall macroeconomic and
entrepreneurial competitiveness. Openness to global trade and investment has
aided the transition to a more market-based system, but deeper institutional
and systemic reforms are needed to strengthen the foundations of economic
freedom", noted the Index.
The Heritage Foundation publishes the annual index of economic freedom for the 30th time. Georgia performed the best in 2021, when the country scored 77.2 points, taking 12th place.
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