Delivering Progress – PMCG is an international development company specializing in policy advising, capacity building,
infrastructure development, maximizing investments, and corporate management. We have the knowledge, experience and personnel to
deliver success internationally.
In achieving our strategic expansion initiatives with regard to geographical coverage, sectors, and products, we believe that it is essential to enhance our organizational capacity continuously. With this in mind, courtesy of the financial support of the European Bank for Reconstruction and Development (EBRD) and the Small Business Impact Fund (Italy, Japan, Luxembourg, Norway, Sweden, Switzerland, South Korea, TaiwanBusiness – EBRD Technical Cooperation Fund, and the USA) we are delighted to welcome to PMCG as a senior industry adviser, Mr. Thomas Wittig, Founder and CEO at WITTIGONIA.
PMC Research recently finished a diagnostic study of two clusters of two regions of Georgia - the processing and preservation of fruits and vegetables cluster in Guria, and the poultry cluster in Kvemo Kartli - in order to contribute to their development and promotion, which is beneficial for the private sector’s enhancement, as it can boost productivity and advance innovation.
In this bulletin, a snapshot of remittance inflows into Ukraine pre-COVID is discussed, followed by its developments in 2020.
According to the World Bank, global remittances will decline by 14% by the end of 20212, compared to the pre-pandemic level of 2019;
In 2020, remittance inflows into Ukraine declined just by 0.3%, compared to 2019;
Remittance inflows in Ukraine have been growing at an annual average of 8.2% over the past decade;
The contribution of remittances to GDP in Ukraine amounted to 7.7% in 2020;
The top senders of remittances to Ukraine in 2020 were Poland (26%), the United States (10%), and the United Kingdom (9%). In 2016-2019, the top senders were Poland (30%), Russia (12%), and the United States (8%);
Remittances from Russia declined the most in 2020 (-20%), compared to 2019, while the United Kingdom recorded the strongest growth (69%) over the same period.
PMC Research has launched a new periodic publication entitled Sector Snapshots. Each issue focuses on a specific sector of the Georgian economy, observing developments with respect to key indicators of the given sector as a whole, the sector’s dynamics, its role in the overall economy, and, finally, financial indicators of companies within that sector.
The publication will produce valuable insights for businesses engaged in the covered sectors, as it lays out the trajectory of development for each sector and its possible financial bottlenecks, thereby contributing to more informed and efficient decision-making.
In the first issue of our new publication, we focus on Georgia’s microfinance sector.
In 2017-2019 new regulations on microfinance institutions (MFIs) entered into force, which significantly altered the landscape of the industry;
Between Q1 2017 and Q4 2020, the number of MFIs and employees in the sector fell, with the former dropping to 40 and the latter to 4145 by Q4 2020 (52% and 16% decrease, respectively);
In Q4 2020, MFIs in Georgia held 1.48 bln GEL of assets and 0.98 bln GEL of liabilities. In this period, the consolidated assets and liabilities of MFIs increased, compared to Q4 2019 with a growth of 7% and 9%, respectively. Compared to Q1 of 2017, figures decreased by 10% and 22%, respectively;
In 2020, gross income (revenue) of MFIs decreased, compared to 2019, and dropped by 13% to 814.9 mln GEL, while net income increased to 47 mln GEL. Moreover, the net income margin increased by 15 percentage points and reached 6%;
In 2020, the total amount of loans issued by MFIs (both to individuals and to legal entities) amounted to 4.58 bln GEL, while the number of loans issued amounted to 2.71 mln loans, which is 4% and 26% decrease, respectively, compared to 2018.
The number of international travelers declined by 75.3% in March compared to the same period of 2020, and by 90.7% compared to the same period in 2019. Meanwhile, the number of international visitors fell by 73.4% (2021/2020) and by 89.0% (2021/2019), and the number of international tourists fell by 64.4% (2021/2020) and by 84.4% (2021/2019);
Saudi Arabia, the United States, Qatar, United Arab Emirates (UAE), and the United Kingdom rank as the top five countries of origin when it comes to highest average expenditure per visit;
Turkey, Saudi Arabia, Qatar, UAE, and Armenia rank as the top five countries of origin when it comes to average expenditure per day;
Targeting visitors from Turkey, via both air and land routes, could be an effective marketing strategy, at least in the short term;
Due to the abnormal impact of the pandemic on 2020 prices, we use 2019 as the comparison year for the Hotel Price Index for the rest of 2021.