Economic Press Monitor December 27, 2020 - January 2, 2021	Days:  19 26 02 16 23

economic & politics

TABULA: “MACHAVARIANI: IT WAS IMPOSSIBLE TO REACT TO OUTBREAK DURING ELECTIONS – THERE COULD BE AN ECONOMIC GROWTH”

December 30, 2020 - “We localized the pandemic in spring”, Georgia’s Finance Minister Ivane Machavariani said, noting that “The process of economic recovery was very encouraging, August, September and October had good dynamic”.

“Unfortunately, context of elections [parliamentary elections of October 31, 2020] did not allow us to react, when we saw growth of the pandemic outbreak in the end of August and at the beginning of September”, the Minister declared.




TABULA: “AID OF $132M FROM THE US WILL BE ALLOCATED TO GEORGIA AFTER REPORT OF THE STATE SECRETARY”

December 29, 2020 - The US President Donald Trump signed a budget law for 2021, according to which Georgia will receive aid of $132 million from the US, Tabula reports.

The aid will be allocated to Georgia after report of the US State Secretary to the budget committee.




KVIRIS PALITRA: “ECONOMY OF 2020”

December 28, 2020 - The article reviews Georgian economic situation during 2020. In this connection, comments of Georgia’s former vice-premier (in the government of Eduard Shevardnadze) Temur Basilia and president of Georgian Young Financiers and Businessmen Association Paata Bayrakhtari are provided.

macroeconomics & budget

BANKEBI DA FINANSEBI: “IVANE MACHAVARIANI – GEORGIAN ECONOMY’S SHORTAGE IN 2021 WILL BE ABOUT $800M”

December 30, 2020 - Georgia’s Finance Minister Ivane Machavariani indicated that tourism in 2020 will be reduced by 90%, while reduction in export makes up about 10%, and “Georgian economy lost revenue of $3 billion only from these two sectors”.

This lost was partly balanced by domestic tourists’ visits and reduction of import, but the country’s trade balance anyway worsened by about $700 million, the Minister noted.




REZONANSI: “YEAR OF TOTAL EXPENSIVENESS – ECONOMY AND POPULATION SUFFERED IRRECOVERABLE LOSSES”

December 29, 2020 - 2020 is a year of total expensiveness – food products rose in price catastrophically, as well as essentials, hygiene goods and so on, the newspaper says.

However, statistician Soso Archvadze indicates that “2020 wasn’t a record-breaking by the rate of inflation, we had much more highly inflationary years”.

energy, oil & gas

REZONANSI: “IN SUMMER, ELECTRICITY MAY RISE IN PRICE AGAIN, INCREASED TARIFFS WILL BURY LOCAL PRODUCTION”

December 30, 2020 - The newspaper reports that 1 kWh of electricity rose in price by 3.5 tetri for population, while for non-household consumers – by 12 tetri on average. At that, regulation commission will set long-term tariffs (in the segment of supply) until July 1.




BANKEBI DA FINANSEBI: ““ENERGOPRO GEORGIA” – CONSIDERABLE GROWTH OF ELECTRIC POWER TARIFFS IS IMMINENT”

December 29, 2020 - “Growth of consumer tariff is, unfortunately, imminent”, says director general of EnergoPro Georgia (energy distributor in Georgia’s regions) Mikhail Botsvadze.

Despite the fact that current tariff was set on January 1, 2018 for a period of 3 years, it, “for objective reasons, doesn’t cover already for years dramatically increased expenses on procurement of electric power or other directions”, Botsvadze explains.




BANKEBI DA FINANSEBI: “ANDRIA GVIDIANI: WITH HIGH PROBABILITY, ENERGY COMPANIES WILL PUT THE QUESTION OF TARIFFS’ GROWTH AND IT WILL BE FULLY LEGITIMATE”

December 28, 2020 - With high probability, Georgian energy companies will put the question of tariffs’ growth and it will be fully legitimate, economic expert Andria Gvidiani says. This growth will affect legal entities more than household consumers, he considers.

finances & banking

FORBES GEORGIA: “CASH: SHADOW ECONOMY, CORRUPTION AND CRIMINAL”

December 30, 2020 - Shadow economy, corruption, criminal, money laundering, subornation and bribery are the greatest challenges for Georgia, the article states.

Authors of the article consider that limitation of cash significantly improves formalization of the country’s economy, tax administration, transparency and accountability.




BANKEBI DA FINANSEBI: “ARCHIL MORCHILADZE – FROM THE POINT OF VIEW OF WEALTH DISTRIBUTION, CURRENT SITUATION IS DEPLORABLE AND DEMANDS RADICAL CHANGES, POSSESSION OF ASSETS IN INSURANCE SECTOR BY BANKS REMAINS THE MAIN CHALLENGE”

December 28, 2020 - In his interview to the newspaper, founder of Insurance Group of Georgia Archil Morchiladze says that introduction of obligatory liability insurance of car owners is the most important thing for insurance industry. This is European directive and the country should fulfill it, he notes.