NBG FORECAST: REAL GDP GROWTH THIS YEAR TO MAKE UP 4.5%

National Bank of Georgia (NBG) expects that Georgia’s real GDP growth in the current year will make up 4.5%. At that, NBG specified that this forecast is basic (middle), while growth rate according to optimistic scenario will make up 5.5%, or 2.5% according to pessimistic scenario. More...

NBG FORECAST: INFLATION THIS YEAR TO BE AT THE LEVEL OF 4.5%

National Bank of Georgia (NBG) expects that inflation in Georgia will remain in the first half of this year above the target (3%). This is caused by inflation, imported because of recent depreciation of lari exchange rate, and increased share of intermediate expenses, NBG explains. More...

IN 2019, GEORGIA’S IMPORT OF OIL-PRODUCTS, WHEAT AND CIGARETTES DECREASED

Sakstat released estimation, according to which first position in Georgia’s import in 2019 was occupied by oil and oil-products again, which amounted to $756.97 million (year-on-year reduction – 12.4%). This group accounted for 8.4% of total import of the country. More...

IN 2019, COPPER AND CARS ACCOUNTED FOR OVER 35% IN GEORGIA’S TOTAL EXPORT

Sakstat released estimation, according to which Georgia’s export of cars amounted in 2019 to $686.75 million (year-on-year growth – 68.2%). This group accounted for 18.2% of total export of the country (the 1^st position). More...

IN 2019, GEORGIA’S 10 LARGEST TRADE PARTNERS ACCOUNTED FOR 66.9% OF TOTAL TRADE TURNOVER OF THE COUNTRY

Sakstat released estimation, according to which Georgia’s 10 largest trade partners accounted in total trade turnover of the country in 2019 ($12.83 billion) for 66.9% (against of 66.2% in 2018).

The top three includes Turkey (share in Georgia’s total turnover – 14.1%, or $1.81 billion), Russia (11.5%, or $1.47 billion) and China (8.5%, or $1.09 billion). More...

ECONOMY MINISTER: USAID WILL ASSIST GEORGIA IN DEVELOPMENT OF PRIORITY SECTORS

Georgian Economy and Sustainable Development Ministry’s Agency Produce in Georgia reported that memorandum was signed today between it and National Agency of State Property, on the one hand, and USAID’s program for economic security, on the other hand.

The memorandum envisages cooperation between the signee parties in facilitation to employment and growth of investment potential, as well as to growth of sales and incomes of micro, small and medium-sized enterprises through development of new and differentiated products, the Economy Ministry specified. More...

JICA TO ASSIST TO DEVELOPMENT OF TECHNICAL ASSISTANCE PROGRAM FOR AGRICULTURAL COOPERATIVES

Georgian Ministry of Environmental Protection and Agriculture reported that technical assistance program for agricultural cooperatives will be developed with assistance of the Japan International Cooperation Agency (JICA).

According to the Ministry, group of the Japanese experts will study needs of Georgian agricultural cooperatives and will prepare recommendations for their development. More...

EBRD FIRST VICE-PRESIDENT: BY RESULTS OF INVESTMENTS, MADE IN GEORGIA, 2019 WAS THE BEST YEAR FOR US

Jurgen Rigterink, first vice president and head of client services group at EBRD, declared that “By results of investments, which were made in Georgia, 2019 was the best year for us”.

Rigterink said this after meeting with Georgia’s Prime Minister Giorgi Gakharia, which was held within the World Economic Forum in Davos. More...

IN Q4 OF 2019, NET PROFIT OF COMMERCIAL BANKS DECREASED BY 2.9% Y-O-Y

National Bank of Georgia reported that net profit of commercial banks, operating in the country, amounted in the 4^th quarter of 2019 to 303.46 million lari. The volume has increased by 4.9% quarter-on-quarter, decreased by 2.9% year-on-year. More...

NBG: ADOPTION OF LEGISLATIVE PACKAGE ON NETTING AND DERIVATIVES BEGINS A NEW STAGE OF DEVELOPMENT OF GEORGIAN CAPITAL MARKET

National Bank of Georgia (NBG) declared that adoption of legislative package on netting and derivatives by the country’s Parliament “begins a new stage of development of the Georgian capital market”.

Financial markets of the country are already ready to use tools of this type, NBG pointed. More...

Bankebi da Finansebi: “TAKING INTO ACCOUNT CURRENT SITUATION ON INTERNATIONAL MARKETS, FLOUR PRICE CAN RISE IN PRICE BY 1-2 LARI”

Levan Silagava, executive director of Georgian Association of Wheat and Flour Producers, indicates that now, two factors act mainly on international exchanges: Russia’s decision on quoting and the US-China agreement, increasing supplies of American wheat to China.

In respect of Georgian market, we think that factor of Russian quoting will not be reflected seriously in flour price at first stage, Silagava declares. More...

Bankebi da Finansebi: “DAVID SAGANELIDZE – PARTNERSHIP FUND SHOULD NOT BE FINANCED FROM THE BUDGET”

David Saganelidze, executive director of Georgian Partnership Fund, points that the Fund is financed by subsidiaries, but “in recent years, it was not financed in fact”.

“These enterprises have own problems, own plan of rehabilitation, they invest received income in own development”, Saganelidze declares and adds: “Therefore, we should not be on their dividends”. More...

Bankebi da Finansebi: “MEDICAL BUSINESS AT THE EXPENSE OF THE BUDGET – HOW PARTICULAR BUSINESS GROUPS GROW RICH AT THE EXPENSE OF UNIVERSAL HEALTHCARE PROGRAM”

In the current year, budget of the Georgian healthcare makes up 4.35 billion lari, while it is did not exceed 3.97 billion lari in the previous year, the article indicates. At that, the healthcare budget of 2019 exceeded Georgia’s total state budget of 2006 (3.8 billion lari). More...

Tabula: “ZURAB CHIABERASHVILI: MEDICINES’ ACCESSIBILITY REMAINS A SERIOUS PROBLEM”

Zurab Chiaberashvili, MP from oppositional European Georgia and former healthcare minister in the government of United National Movement, says that access to medicines still remains a problem in the country.

“Starting from August 2019, number of registered beneficiaries of the subsidized drugs program is decreasing, whereas purchase of drugs is one of serious problems in this country”, Chiaberashvili declared at the news briefing. More...

MONTHLY TOURISM UPDATE (OCTOBER 2019)

- After GDP recalculation based on 2008 system done by the National Statistic Office of Georgia, Share of non-observed economy in the total economy has increased from 8.3% to 13%, while share of non-observed part in Hotels and Restaurants sector has increased from 9.2% to 54.3%;

- According to revised GDP, since 2010 hotels and restaurants sector has increased by 369%, outperforming other sectors twofold;

- Largest share of tourist expenditures (31.5%) is spent on foods and drinks, while only 24.6% is spent on accommodation;

- In October 2019, compared to September 2019, average prices for hotels have decreased by 5.9%;

- In October 2019, compared to the same period of 2018, average prices for hotels have decreased by 5.2%;

- In the third quarter of 2019, compared to the same period of 2018, total tourist expenditure has increased by 4.1%;

- In spite the ban on the Russian flights in July of this year, in August 30% more Russians visited Georgia compared to the previous month. Compared to August, in October 43.1% less Russians have visited Georgia. More...