On May 23, PMC Research Center (PMC RC) in association with ISET Policy Institute under the USAID Georgia Economic Security Program (GESP) conducted a presentation of the final report of the project entitled “Sector and Value Chain Analytics.”

On May 5, PMC Research Center in collaboration with the Georgian Center for Strategy and Development (GCSD) conducted a presentation and panel discussion entitled “Assessment of the Effectiveness of Sanctions Against Russia.”

On May 3, we participated in an event entitled “Diversified and Inclusive Civil Service” and presented the findings of the “Taking Stock of Ethnic Minority Participation in the Public Service” research, aimed at assessing the representation of ethnic minorities, in particular Azeri- and Armenian-speaking groups in the civil service and identifying barriers that limit their active engagement in this sector.

PMCG recently started working on a new project entitled “Regulatory Impact Assessment (RIA) on Economic Reforms - Tax Dispute Resolution” which is being implemented within the USAID Economic Governance Program and is aimed at addressing the current shortcomings of the tax dispute resolution (TDR) system and to align it with good international practices, ultimately leading to the realization of a fair, effective, and efficient TDR system.

In April 2022, the number of persons receiving a monthly salary increased by 3% compared to the corresponding period of 2021 and by 15% compared to the corresponding period of 2020. From November 2021 to April 2022, the total number of vacancies published on jobs.ge amounted to 32,301, which was 81% higher compared to the corresponding period of 2020-2021 and 69% higher compared to the corresponding period of 2019-2020. From November 2021 to April 2022, a total of 9,112 vacancies were published in the field of sales/procurement, which was 109% higher than the corresponding period of 2020-2021 and 82% higher compared to the corresponding period of 2019-2020.

This paper explores the challenges and opportunities teleworking presents in the rural areas of Georgia and seeks answers on how to resolve the existing problems while taking advantage of the transitions the labor market is undergoing. It aims to analyze the institutional relationships, barriers, and opportunities to promoting change in the e-work market or workforce development system in the rural areas of Georgia. The paper also sets out to identify the potential policy interventions that could be taken to support this change.

This quarterly report provides an analysis of economic trends, as well as denoting the challenges and opportunities (in local, regional, and global contexts) in selected value chains within six sectors to improve evidence-based decision-making by providing quality information and analytics. The specific sectors covered are tourism; creative industries; light manufacturing; shared intellectual services; solid waste management and recycling; and cross-cutting sectors. The analysis tracks trends from the third quarter of 2021.

In 2021, the recovery of international tourist arrivals to Georgia (31% of 2019 figure) was lower both compared to European (38%) and Central/Eastern European (36%) averages, but higher compared to the global average (28%). Among the selected international benchmark countries (Albania, Croatia, and Greece), Georgia performed the worst, while Albania almost recovered to 2019 levels (89%). Compared to its neighboring countries, Georgia performed worse than Turkey (55%) and Armenia (46%), but better than Azerbaijan (25%).

In Georgia, the average cost of a room in a 3-star hotel was 141 GEL per night in March 2022, while the average cost of a room in a 4-star hotel in Georgia was 231 GEL per night and the average cost of a room in a guesthouse was 103 GEL per night. The average cost of a room in a 5-star hotel in Georgia in March 2022 was 413 GEL per night. In Tbilisi and Kakheti, the average price was 493 GEL, followed by Guria - 398 GEL and Adjara - 390.

Financial institutions play a pivotal role in the development of the Georgian economy. Indeed, while the financial system remains dominated by commercial banks, microfinance institutions (MFIs) are the biggest non-bank lending institutions based on portfolio volume. The PMC RC periodically publishes sector snapshots on state of MFI sector in Georgia and in this bulletin the state of sector during the period of 2018-Q1 2022 will be overviewed.

In March 2022, the number of Russian, Belarusian and Ukrainian travelers entering country increased significantly and reached 45.1 thsd, 20 thsd and 16.9 thsd, respectively. The month over month (MoM) increase was especially high for Belarus (281%) and Russia (69%). Meanwhile, the exit from Georgia by Belarusian and Russian visitors has also shown a significant MoM increase. In March 2022, remarkable differences can be noticed between the number of entries and exits, indicating that significant part of the travelers, especially from Russia and Belarus, have not left the country. In March 2022, the travel receipts from Belarus and Russia showed MoM increase of 551% and 133%, respectively, which again strengthens the observation of the rapid inflow of travelers from Russia and Belarus.

In Georgia, the average cost of a room in a 3-star hotel was 152 GEL per night in March 2022, while the average cost of a room in a 4-star hotel in Georgia was 246 GEL per night and the average cost of a room in a guesthouse was 114 GEL per night. The average cost of a room in a 5-star hotel in Georgia in March 2022 was 406 GEL per night. In Tbilisi, the average price was 574 GEL, followed by Kakheti - 451 GEL, Samtskhe-Javakheti - 373 GEL and Guria - 352 GEL.

In March 2022, the number of persons receiving a monthly salary increased by 4.9% compared to the corresponding period of 2021 and by 5.3% compared to the corresponding period of 2020. From October 2021 to March 2022, the total number of vacancies published on jobs.ge amounted to 32,380, which was 91% higher compared to the corresponding period of 2020-2021 and 39% higher compared to the corresponding period of 2019-2020. From October 2021 to March 2022, a total of 2,330 vacancies were published in the field of informational technologies, which was 33% higher than the corresponding period of 2020-2021 and 48% higher compared to the corresponding period of 2019-2020.