Increasing the employment rate represents one of the most significant challenges and priorities of the Georgian economy. This bulletin appraises trends related to employment for the period of 2014-2017.
Georgia was ranked 66th among 140 countries in the World Economic Forum’s Global Competitiveness Index1 in 2018.
During 2010-2018 Georgia’s position in the ranking was improving, except one year. In 2018, compared to 2017, Georgia’s position in the ranking improved by 1 place.
Among the so-called pillars measured to calculate the Global Competitiveness Index in 2018, Georgia scored best in terms of its labor market (31st place) while it was least competitive in
terms of market size (102th place).
Among the Central Asia and South Caucasus countries2 in 2018, Kazakhstan was the top performer in this Global Competetiveness Index (59th place), while Tajikistan held the lowest position in the index (102nd place).
Analysis of the preliminary data on FDI for the first half of 2018 revealed the following general findings:
The financial, energy, and construction sectors attracted the most FDI;
Azerbaijan, the United Kingdom, and the Netherlands were the largest investing countries for Georgia;
Based on the cumulative values of the past 4.5 years, transports and communications is the most attractive sector for FDI in Georgia;
The shares of FDI from China and the EU in the total FDI in Georgia were their highest since 2014;
Based on a semi-annual analysis, reinvestments surpassed equity for the first time in th e available data of 2013-2018.
The first half of 2018 produced some interesting figures regarding Georgia’s external trade. Even though the existing data is only preliminary, the analysis thereof unveils some curious results. Georgia’s exports and imports reached their highest point for the observed period of 2015-2018. In the first half of 2018, Georgia was recorded to have conduced external trade with 133 countries, a record-breaking amount in the observed period. With free trade agreements already in place with China and the EU, we have been able to conduct a rough analysis of the effects of the two agreements so far. To analyze these effects, the observed period is taken from January 2015 to June 2018.
For the period of 2014 to 2017, in every first quarter of each year compared to the first quarter of the previous year, the nominal exchange rate of the Georgian Lari (GEL) against the US Dollar (USD) depreciated. This trend stopped this year though as in the first quarter of 2018, compared to the first quarter of 2017, the GEL appreciated by 4.5% and the value of 1 USD was equal to 2.49 GEL (average exchange rate in the first quarter of 2018).
According to preliminary data, the Georgian economy is characterized by a 5.0% growth in 2017, which is the highest annual real growth rate for the country since 2012. A trend analysis of GDP is useful in comprehending the indicator relative to previous years. Furthermore, a sectorial analysis of Georgia’s GDP enables us to understand the reasons behind the country’s economic growth in 2017. The three sectors which recorded the most significant growth in 2017, namely hotels and restaurants, construction, and financial intermediation, have been selected for further examination.
High-quality education is one of the main determinants of economic growth. According to the “Government Program 2016-2020”, education is one of the main priorities for the Government of Georgia. Since 2013, the allocated budget of the Ministry of Education and Sciences of Georgia and its share in GDP has been increasing annually. These dynamics can affect, both directly and indirectly, on economic indicators such as productivity, competitiveness, unemployment and welfare. In this regard, the review of different aspects of higher and vocational education is worthwhile.
Positions in international rankings are an important indicator of how a country is performing with regard to its economic, social and political environment. In this bulletin, Georgia’s positions in international rankings and their dynamics will be reviewed based on recent data.
The 100th edition of Economic Outlook and Indicators happily coincides with PMCG’s 10-year anniversary. Through the last decade, Georgia’s economic indicators have fluctuated substantially. In this edition, we present the dynamics of development for this period, and also analyze the main economic indicators for 2007-2017.
In 2017, compared to the corresponding period of 2016:
• In the first three quarters, the number of tourists increased by 29%; in the third quarter, the proportion of tourists making up total international travelers reached its peak at 52.1%.• In the first three quarters, the proportion of air travel in all travel rose by 26% while travel by land decreased by 5%.• In the first three quarters, the number of persons arriving at any of Georgia’s three international airports (Batumi, Kutaisi, and Tbilisi) increased by 47%.• From January to August, payments made by foreign credit cards in Georgia increased by 33% and payments made by Georgian credit cards in foreign countries increased by 37%.