We recently launched a summative evaluation of the 5-year Canada-Ukraine Trade and Investment Support (CUTIS) Project, aiming to share results achieved by the project with key stakeholders, and enhance future possible programming in the economic growth sector by recommending how to strengthen the involvement of Ukrainian small and medium-sized enterprises (SMEs) in trade and investment.

We recently published two policy briefs about the shared intellectual services and light manufacturing sectors. Both documents were developed as part of the five-year USAID Georgia Economic Security Program, which is focused on improving the competitiveness of four priority sectors: light manufacturing, tourism, creative industries, and shared intellectual services.

PMCG recently started working with the National Agency of Mines (NAM) of Georgia, which is in the process of modernizing in order to boost investments in the mining sector, thereby enhancing its sustainability. In this regard, we will provide support in the development of a communication strategy and corresponding communication materials for the NAM to increase the attractiveness of the country’s mineral potential and to reach out to potential investors and responsible mining companies.

On July 27-28, we conducted focus group discussions with the local residents of Gurjaani municipality about the introduction of a new landfill site selection approach, and to present to them the importance and role of the new waste disposal facility.

The COVID-19 pandemic continues to represent a major economic shock, causing considerable inflation volatility. The pandemic has been responsible for a substantial decline in inflation rates over the course of 2020 globally. However, this trend underwent a significant reversal in the first half of 2021. In this issue, we overview inflation trends in Ukraine prior to and during the COVID-19 crisis.  

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) in the selected value chains within six sectors to improve evidence-based decision-making by providing quality information and analytics. These specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management, and recycling, along with cross-cutting sectors. The analysis tracks trends from 2016 to December 31, 2020.Please find the full publication in English and the executive summary of the report in Georgian.

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) in the selected value chains within six sectors to improve evidence-based decision-making by providing quality information and analytics. These specific sectors are tourism, creative industries, light manufacturing, shared intellectual services, waste management and recycling, along with cross-cutting sectors. The analysis tracks trends from 2014 to the third quarter of 2020. The following is a synopsis of the findings for this quarter: Tourism (accommodation, catering, adventure tourism, gastronomic tourism, and cultural tourism); Creative industries (media content production and post-production, and artisan); Light manufacturing (furniture, packaging, construction materials, personal and protective equipment (PPE), and wooden toys); and Solid waste management and recycling. Please find the full publication in English and the executive summary of the report in Georgian.

In the first half of 2021, external trade turnover in Georgia amounted to 6.2 bln USD, which is 20.7% more than corresponding period of 2020 and 0.5% more than the prepandemic period of January-June 2019. Georgian exports amounted to 1.9 bln in January-June 2021, which is 25.2% more than in January-June of 2020 and 5.3% more than in January-June of 2019. Moreover, Georgian imports recorded 4.3 bln USD, which is 18.9% more than in the first half of 2020 and 1.5% less than in the corresponding period of 2019. In the first half of 2021 Georgian trade deficit increased by 0.3 bln USD (14.5%), compared to the first half of 2020, and decreased by 0.16 bln USD (6.1%), compared to the corresponding period of 2019 and amounted to 2.44 bln USD. In the period of January-June 2021, compared to January-June of 2020, trade turnover increased with the EU (9.9%), Russia (24.8%) and China (22.7%). However, compared to the corresponding period of 2019, trade turnover increased with Russia (12.3%) and China (27.9%), but decreased with the EU (-14%). Georgia’s main total trade partners in the first half of 2021 were Turkey (15.2%), Russia (11.8%) and China (10.5%). Main export partners were China (15.4%), Russia (14%) and Azerbaijan (8.4%). Moreover, main import partners were Turkey (18%), Russia (10.8%) and China (8.4%).

In Georgia, the average cost of a room1 in a 3-star hotel was 149 GEL per night in July 2021, while the average cost of a room in a 4-star hotel in Georgia was 265 GEL per night and the average cost of a room in a guesthouse2 was 85 GEL per night. The average cost of a room in a 5-star hotel in Georgia in July 2021 was 524 GEL per night. In Guria, the average price was 809 GEL, followed by Adjara - 550 GEL, Kakheti - 543 GEL and Tbilisi – 539 GEL.

After a challenging 2020 and early 2021 for the tourism sector, various positive developments, such as the alleviation of restrictions, were seen in the tourism sector in Georgia in the second quarter of 2021. As of July 2021, there are no restrictions of movement in place within Georgia, and both land and air borders are open for eligible visitors. Below is a timeline of the relaxing of various COVID-19 measures in the second quarter of 2021: Since May 17, the curfew was moved from 21:00 to 23:00. Since May 22, restaurants have been allowed to operate on weekends in open spaces. Since June 1, restaurants have been allowed to operate on weekends in both open and closed spaces. Since June 1, land borders have been reopened. On June 14, tourism information centers around the country re-opened. On June 16, mandatory PCR testing for visitors aged less than 10 was eliminated. Since July 1, the curfew (23:00 – 04:00) was removed.

  This policy brief on the shared intellectual services sector in Georgia has been developed by Policy and Management Consulting Group (PMCG) under the USAID Economic Security Program. Its aims are to identify the key economic policy challenges in Georgia existing in this sector, and to facilitate dialogue between private and public sectors including a wide spectrum of civil society and political representatives. First, the policy brief provides an overview of the shared intellectual services (SIS) sector in the Georgian economy. Second, it analyzes policy challenges in this sector in Georgia from the perspectives of different stakeholders, including representatives of the private sector, government, donor organizations, and business associations/clusters. Moreover, it overviews the Georgian government’s responses to the existing challenges in the sector. Third, it analyzes the impact of the COVID-19 pandemic on the SIS sector in Georgia from the perspectives of different stakeholders (including government, the private sector, business associations/clusters, and donor organizations). The document concludes by presenting recommendations to address existing challenges in the SIS sector in Georgia.

  This policy document has been prepared within the scope of the USAID Economic Security Program. The goal of the program is to improve the competitiveness of four priority sectors (light manufacturing, tourism, creative industries, and shared intellectual services) by increasing investment, revenues, and the number of high-value jobs therein. This study focuses on the light manufacturing industry, and specifically on the furniture and packaging material sub-sectors. It aims to examine the existing challenges in the relevant value chains and to determine ways to overcome the obstacles identified through dialogue with the representatives of the public and private sectors.

The Ukrainian Hryvnia’s exchange rates relative to foreign currencies experienced some noteworthy tendencies in 2016-2021. This period of course includes the ongoing COVID-19 pandemic, which has had a significant impact on exchange rate fluctuations globally. In this bulletin, we review the exchange rate fluctuations in Ukraine in 2016-2021, as well as some of the key factors affecting it.