We recently launched a new program entitled “Good Governance Fund (GGF),” aiming to reduce corruption, promote transparent and accountable institutions, and to build open, inclusive economies and societies in Armenia, Georgia, Ukraine, and Moldova.

On July 9, PMC Research presented the findings of its research entitled “Relations between China, the European Union and Georgia: Analysis of Economic and Political Relations” and subsequently held a discussion thereon.

We recently developed an investment catalogue for Kutaisi (aiming to stimulate domestic and foreign direct investments in the city) and an export catalogue for Imereti region (showcasing products of the region’s leading manufacturers).  

We are pleased to announce that we recently became a member of the International Association of Chiefs of Police (IACP), the world’s largest and most influential professional association, headquartered in US.

Due to the COVID-19 pandemic, global remittance flows are expected to fall by 20% in 2020 (World Bank), while the decrease in Georgia is forecast at 15% (IMF); In the first half of 2020, remittances have declined by just 4.8% compared to the same period of 2019; Remittance inflows have been growing by an average of 8.5% over the past decade; The contribution of remittance inflows in GDP has increased significantly over time and amounted 11% on average for the period of 2015-2019; In 2020, remittance inflows saw a sharp drop (-42.3%) in April, however, the recovery in June was also strong (17.8%), compared to the same period of 2019; Remittances from Russia declined the most in the first half of 2020 compared to the first half of 2019 (-27%), while Italy recorded the strongest growth (14%).

In Georgia, the average cost of a room1 in a 3-star hotel was 135 GEL per night in June 2020. While the average cost of a room in a 4-star hotel in Georgia was 223 GEL per night and the average cost of a room in a guesthouse2 was 73 GEL per night. The average cost of a room in a 5-star hotel in Georgia in June 2020 was 322 GEL per night. In Tbilisi, the average price was 471 GEL, followed by Kakheti - 327 GEL, Samtskhe-Javakheti - 279 GEL and Adjara – 273 GEL.

Using various assumptions, in Q3 of 2020, the maximum capacity of domestic tourism expenditures is to replace 33% of revenues from international tourism;  Using various assumptions, total revenues generated from tourism (both, domestic and international) in 2020 could amount to $1730 mln, which is 44.1% of the corresponding figure in 2019; Domestic tourism in Georgia reopened on June 15th, while the reopening of borders is postponed to the near future; The number of international travelers declined by 94.6% in May compared to the same period of 2019, while the number of inter- national visitors fell by 94.1% and the number of international tourists fell by 93.8%; In June 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is just starting to recover from the COVID-19-induced crisis.

It’s been five years after DCFTA was implemented and two years have passed since FTA with China. It is interesting to conduct ex-post analysis to find out how these FTAs affected Georgia’s economy. Goal of ex-post analysis will be to determine what qualitative and quantitative impacts are observed after Georgia signed DCFTA and FTA with China, on macro and sectoral levels. Also, the research paper will try to find if DCFTA and FTA with China resulted in welfare gains. To be more precise, the paper aims to determine whether the increase in trade was a result of trade creation or trade was diverted.Another aim is to analyze quantitative effects on imports and exports on different aggregation levels. For conclusion, research paper will analyze differences and similarities between DCFTA and FTA with China and based on these empirical findings, the research will identify possible threats and opportunities, which may come from future free trade agreements.

The main objective of the research is to study the impacts that free trade agreements with the EU (DCFTA) and China had on Georgian economy and political implications that they might result in.

This policy brief attempts to understand China-Georgia relations. Georgia-China economic relations have received particular attention, yet there is a relative lack of research5 on how both Georgia and China see bilateral relations, and what possible factors could be limiting the depth of the partnership. Discussing this is important as Georgia is building closer ties with the EU in particular, and the Western institutions and states in general, while China’s suggested model of development stands opposite to Western liberal order.

The investment catalogue for Kutaisi to stimulate domestic and foreign direct investments in the city.

The export catalog for Imereti Region, showcasing products of the region’s leading manufacturers.

Due to the COVID-19 pandemic, global FDI is expected to fall by 30-40% in 2020 (UNCTAD), while the decrease in Georgia is forecast at 19% (IMF); Net FDI inflows have been decreasing in Georgia since 2017, based on both, yearly and Q1 data; Net FDI inflows in Georgia experience volatility over time, due to large one-off investment projects; Georgia has been leading among EaP countries in terms of the share of FDI in GDP in 2017 and 2018; Net FDI inflows decreased by 41.7% in Q1 of 2020, compared to Q1 in 2019, mainly due to COVID-19 pandemic.