Current German-Georgian economic relations
Since 2014, German-Georgian economic relations operate in the context of the EU-Georgia free trade agreement (“DCFTA”). The positive momentum following the conclusion of the DCFTA was interrupted by the pandemic. In particular, exports of goods to Georgia fell by 22%. The services balance was strongly affected by the slump in tourism. German FDI increased by 7% in 2020 despite the pandemic. Attracting FDI remains a key issue to realize the potential in sectors such as agriculture and diversify the economy. Cluster development is also important in this context.