When you think of diversifying your business portfolio it is better to expand, that is, beyond the geographical boundaries of your country. And if you happen to operate from one or more of the developed economies like the United States of America, Canada, and the European Union not to speak of Australia, Japan, China, South Korea or Singapore, just factor in the prevailing tax rates in your country and the intense competition. Thus, it is time you pondered if the tax rates have added some value to your business or did the intense competition has led to a situation where ‘being profitable’ has become a somewhat difficult proposition?
Looking beyond geographies:-
In case you think of the many advantages that a developed economy like the one you are in at present bring to the table then you better acknowledge the fact that in an increasingly integrated world economy, the inherent advantages of developed economies can be offset by countries that very nearly mirror the former in terms of infrastructure, stability, opportunities, and a free market economy among others.
Here comes Georgia:-
This is where Georgia, the country nestled in a strategic location between Europe and Asia comes as a destination where you can invest and help your business to grow. So, what makes Georgia the place where you can park your money either directly or by engaging investment consulting services?
A stable GDP:-
The World Bank has projected a positive growth forecast for Georgia in 2018, 2019 and 2020 of around 4.2 %, 4.7% and 5% respectively. These figures are the best for the region and show that the economy is not only sound and stable but is poised to grow further. As an investor this should be good news for then there shall be no negative policy prescriptions to be undertaken by the government of the day. A stable economy means better chances for your business to prosper.
The public debt of Georgia has been declining of late. The total public debt to nominal GDP was around 41.5% in 2015, which was mainly attributed to the depreciation of the currency, the Georgian Lari. However, a robust economic forecast means the country will not fall into a debt trap and instead grow robustly. This means good news for investors and investment fund consultants.
A runaway inflation can negate all the benefits that could accrue out of investing in a country. However, the same does not apply to Georgia for its central bank the National Bank of Georgia follows a monetary policy targeting the same and is aiming at keeping the inflation rate to about 3% of the GDP for the year 2018.
The FDI juggernaut:-
A plethora of factors like a stable polity, flat tax rates and tax holidays in special zones, preferential trade regime, a free market economy where the government of the day follows a laissez-faire policy and a robust infrastructure among others has meant a consistent flow of FDI over the years. The year 2017 saw an inflow of $403.3 million, which is not only considerably higher than the previous period but is the highest in the region as well. This, for an investment funds management company, is good news for it implies the country is looked at positively, globally.
The broad contours of the Georgian economy mean the country is a good place for your business to flourish and remain competitive. However, engaging local investment consulting services would do a world of good in navigating the waters.