Recent activity in Georgia has been characterised by two events: the Covid-19 crisis and recent elections. The former saw the country enter into a deep recession with the 2020 budget deficit increasing to 9.1% and government debt to GDP increasing to 59.9%. Many construction projects and M&A transactions were put on hold as a result of this, which meant that the workload dipped for many firms in the first half of the year, however firms are confident that this will pick up again as restrictions ease. Deals were also put on hold in the run up to the general election which saw the Georgian Dream party retain its position in parliament.
Energy and infrastructure have been the sectors that have seen the most activity recently thanks to attention from foreign investors, especially from the Middle East.
Centred around the country’s capital, Georgia’s legal market is dominated by firms including BGI Legal operating in Tbilisi. International firms such as Dentons also hold a strong position in the market.