Economic Press Monitor July 29 - August 4, 2018	Days:  21 28 04 11 18

economic & politics

FORBES GEORGIA: “GEORGIA ADVANCED AMONG THE BEST FOR BUSINESS EUROPEAN COUNTRIES”

August 3, 2018 - In the rating of the best for business European countries of the EU Chamber (EuCham), Georgia with 69 points occupies the 18^th place among 46 countries, the magazine reports. The article notes that Georgia improved its score by 0.42 points.




BANKEBI DA FINANSEBI: “BILL ON ACCUMULATIVE PENSION IS ADOPTED – GUARANTOR OF WELL-TO-DO OLD AGE OR NOT-CALCULATED RISK”

August 2, 2018 - Entry in force of law “On Accumulative Pension” is planned for 2019. In connection with pension reform, the newspaper interviewed economist researchers.




FORBES GEORGIA: “IN E-GOVERNANCE INDEX OF THE UN, GEORGIA IS ON THE SIXTIETH PLACE IN THE WORLD”

July 31, 2018 - Georgia’s score in the UN E-Government Development Index makes up 0.69 points, which places the country on the 60^th place among 193 countries, Tabula reports.

The article notes that in 2018, Georgia improved its score by 0.08 points and the ranking – by 1 step.




KVIRIS PALITRA: “I AM AFRAID THAT WE WILL RECEIVE RESUSCITATION OF THE CENTRAL COMMITTEE IN THE COUNTRY”

July 30, 2018 - Expert Vakhtang Dzabiradze estimates that billionaire Bidzina Ivanishvili’s appearance in politics, as well as his return to politics after leave, was “the wrong step”. “Ivanishvili has to return there, where he really runs the country, i.e. to become the prime minister”, he considers.




KVIRIS PALITRA: “KVIRIKASHVILI’S SILENCE IS THE WRONG POSITION”

July 30, 2018 - Ex-speaker of the Parliament David Usupashvili says that Bidzina Ivanishvili, billionaire ex-premier and chairman of ruling Georgian Dream, who came back to public space after 2 years of silence, “looked tired”. It seems that Ivanishvili “became overloaded with the 6-year political epic and looks for an exit”, he specifies.

macroeconomics & budget

FORBES GEORGIA: “AGAINST WHICH CURRENCIES LARI IS DEPRECIATED”

August 3, 2018 - In the 2^nd quarter, nominal exchange rate of lari against the US dollar became stronger in comparison with the previous quarter by 1.6%, against euro – by 4.4%, the magazine reports with reference to National Bank of Georgia.

Besides, the article points that lari became stronger quarter-on-quarter also against Russian ruble and Turkish lira – by 9.5% and by 13.8%, respectively.




BANKEBI DA FINANSEBI: “HOW MILLIONS, ALLOCATED FOR SOCCER DEVELOPMENT, ARE MISSPENT”

August 3, 2018 - State Audit Service published conclusion on compliance of expenditure of the budgetary funds, allocated for development of the Georgian soccer in 2015, 2016 and in 9 months of 2017, the newspaper reports.

The conclusion reports about violations, which were revealed in Fund of Georgian Soccer Development and Georgian Football Federation, the article says.




BANKEBI DA FINANSEBI: “NIKOLOZ GAGUA: SLOWING OF ECONOMIC GROWTH IS CONNECTED WITH CONSTRUCTION SECTOR”

July 31, 2018 - Georgia’s Deputy Finance Minister Nikoloz Gagua attributed delay of economic growth in June, in comparison with May, to the sector of construction. He assured that in the next months, dynamics in construction will improve again.

energy, oil & gas

NETGAZETI.GE: ““WE WILL LOOSE ALL AT ONCE” – WHY RESIDENTS OF TSAGERI OPPOSE CONSTRUCTION OF HYDROELECTRIC STATIONS ON RIONI”

August 3, 2018 - Several villages of Tsageri municipality (region of Racha-Lechkhumi and Kvemo Svaneti) oppose construction of series of hydroelectric stations on Rioni River, Netgazeti.Ge reports.

Part of local population fears that construction of hydroelectric stations Tvishi and Namakhvani-Zhoneti will lead to climate change, the article specifies.

companies

TABULA: “FORMER AMBASSADOR DISCLOSED COST OF “LIKANI” HOTEL, GEORGIA PAID $10M”

August 1, 2018 - In June, Georgian government redeemed Likani hotel, located in Borjomi, from the Kazakhstan side, but did not name the exact volume of transaction, Tabula says.

However, according to former Kazakh ambassador in Georgia Ermukhamet Ertysbayev, cost of the hotel made up $10 million.

transport & communications

TABULA: “54% OF GEORGIAN POPULATION USES INTERNET DAILY, 64% – ONCE A WEEK”

August 2, 2018 - Referring to new survey (June 23 – July 8) of National Democratic Institute (NDI), Tabula reports that 54% of Georgian population use Internet daily, while 64% – at least, once a week.

According to January survey, Internet was used once a week by 62%.




FORBES GEORGIA: “ACCORDING TO CYBER SECURITY INDEX, GEORGIA IS ON 19^TH PLACE IN THE WORLD”

August 2, 2018 - E-Governance Academy places Georgia on the 19^th place among 100 countries, included in National Cyber Security Index (NCSI), the magazine reports.

Georgia’s general score is 64.94 out of 100 points, while the country got 59.66 points in terms of digital development.




FORBES GEORGIA: “INCOME OF INTERNET SERVICE PROVIDERS GROWS”

August 1, 2018 - Referring to National Communication Commission, the magazine reports that Georgian Internet service providers gained in the first half of the year retail income of over 92.3 million lari.

The article notes that for the same period of previous year, income of the companies exceeded 88 million lari (respectively, growth – 4.9%).

finances & banking

BANKEBI DA FINANSEBI: “BANKING TANGO – WHO LEADS”

August 1, 2018 - The phrase of billionaire chairman of ruling Georgian Dream Bidzina Ivanishvili, “two banks [apparently meaning two largest banks of Georgia, TBC Bank and Sakartvelos Banki (Bank of Georgia)] absorbed the country”, caused major buzz, the newspaper states.

Talks about Ivanishvili’s plans to change current situation in Georgian banking sector have started in the beginning of the year, when information was spread on forthcoming merger of his bank Cartu with Liberty Bank, acquired not so long ago by family of late billionaire Patarkatsishvili, the article specifies.




KVIRIS PALITRA: “ALL GEORGIA IS PAWNED IN BANKS”

July 30, 2018 - Georgia, where 710 out of each 1,000 people have a banking debt, took in 2016 the 1^st place in terms of volume of population’s debts to commercial banks, the newspaper reminds.

Economic analyst Vazha Kapanadze notes that “problem of excessive indebtedness arose not now, but was collected for years”.

construction

REZONANSI: “RENT OF APARTMENTS IN TBILISI INCREASED IN PRICE BY 50-100 LARI”

August 2, 2018 - Prices on Tbilisi’s real estate market grow annually, the newspaper says.

Experts say that accommodation in the capital is needed by visitors from regions, and their demand for rent is so high that owners freely raise the cost by 50-100 lari, the article specifies.




FORBES GEORGIA: “TBILISI ACCOUNTS FOR 46.8% OF CONSTRUCTION ACTIVITY”

July 31, 2018 - The magazine reports that in January-June, 4,941 construction permits were issued countrywide, decreasing in number by 1.4% in comparison with the same period of last year.

However, these permits are issued for construction of total 2.99 million square m that exceeds by 4.8% the last year’s similar indicator.




TABULA: “WHAT SIZE GEORGIA’S CONSTRUCTION SECTOR IS – STATISTICS”

July 31, 2018 - Referring to Sakstat, Tabula reports that area of construction objects, built (finished) in Georgia in the first half of the year, totals to 928,000 square m that is by 22% less in comparison with previous year.

Among regions, 29% of the finished objects are located in Tbilisi, 16% – in Kakheti.

tourism

BANKEBI DA FINANSEBI: “WHY DOES NOT MANAGE GEORGIA TO ATTRACT THE EUROPEAN TOURISTS”

August 1, 2018 - In 2017, Georgia was visited by 7.9 million international visitors, whose number exceeded by 18% an indicator of 2016, and the country gained from tourism an income of $2.75 billion that corresponds to 6.7% of GDP.

According to the state strategy of tourism development, share of tourism in GDP has to grow by 2025 to 7.9% that really is not a high indicator in the conditions of the similar growth of tourist flow, the newspaper says.