ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
May
30

Patience, Genatsvale!

“The one who is patient, wins.” Georgian proverb One of the first things tourists in Georgia notice is how crazy that drive from the airport to the city is. Jumping red lights, breaking rules to take over the jeep in front, the Georgian taxi driver risks his (and not only his!) life to deliver his passenger to the destination. As a distraction from the dangerous ride, the driver might offer the famous “dzhigit” (a brave equestrian) joke: a dzhigit passes on red light, but stops on green – in case another dzhigit is crossing the road. Dzhigit-style d...
Rate this blog entry:
Continue reading
1994
0 Comments
Write a Comment
Jan
18

Men Are Rational, Women Are Adaptive?

INSIGHTS FROM GEORGIA’S CONSUMER CONFIDENCE INDEX For over three and a half years, the ISET Policy Institute has been tracing the trends in the Georgian consumer sentiments. Every month a team of callers dial randomly generated telephone numbers to interview around 330 people from all over Georgia. The interviewer first asks the basic questions about the respondent’s age, level of education, place of residence, and then follows up with questions about the current financial situation of the household and the person’s expectations about the future economic...
Rate this blog entry:
Continue reading
1991
0 Comments
Write a Comment
Dec
20

Give Your Country a Holiday Gift: Buy Small, Buy Local, Buy Georgian!

Once again, Georgians across the country are preparing for the holiday season, making travel plans, crushing walnuts for gozinaki, and buying gifts for their friends and families. Gifts are an important part of celebrating the New Year and Christmas, signifying the importance of friendship and allowing us to treat our loved ones to something to start a brand new year in style. It is therefore no coincidence that November and December are some of the strongest months for purchasing consumer goods in Georgia, not to mention across Europe and America. ...
Rate this blog entry:
Recent comment in this post
Guest — TarielZivzivadze
Wonderful article, especially in terms of showing International Experience. + one more ... kar.ge is a movement, not just a websit... Read More
Tuesday, 22 December 2015 9:09 AM
Continue reading
2122
1 Comment
Write a Comment
Oct
22

Tbilisi: the New Regional Shopping Bonanza or What?

As suggested by ISET’s most recent Consumer Confidence report, Georgian consumers are in no mood for shopping. And, yet, Tbilisi is abuzz with excitement about the recent lavish opening of East Point – a giant new shopping and entertainment center, the largest of its kind in the country.  Thus, while consumer confidence is hitting new lows, supply of retail space and world class shopping malls continues to hit its highs. A natural question arises: is Georgia’s retail market able to accommodate this surge in the supply of retail space? SUPPLY OF...
Rate this blog entry:
Continue reading
2426
0 Comments
Write a Comment
Oct
10

Excise Tax Experiments with the Georgian Beer Industry

During the last 12 months, the Georgian authorities have been conducting interesting experiments designed, so it seems, to test the resilience of domestic beer producers. In September 2014, the industry was hit by Article 171 of the Civil Code, prohibiting alcohol consumption in public places. The beer market, 97% of which is supplied by local producers, has immediately shrank by 22% (in physical volume, see chart), in annual terms. As if that were not bad enough, the Georgian Ministry of Finance had another surprise up its sleeve: a doubling of excise t...
Rate this blog entry:
Recent Comments
Eric Livny
A Czech economist claims that beer is not healthy?
Monday, 12 October 2015 2:02 PM
Guest — JanFidrmuc
Tax changes aside, the spike in February also coincides with my first visit to Georgia. But I'm sure that is just a coincidence. A... Read More
Saturday, 10 October 2015 8:08 PM
Continue reading
2449
2 Comments
Write a Comment
Sep
18

Confidence Matters!

Georgian consumer confidence suffered a major blow at the end of 2014, in the wake of the sharp Lari depreciation. Around February 2015, the Index found some support at the very low level of -35-30 points, and has been slightly improving since then. In July 2015, this mildly positive trend was reversed, and in August, the Index dropped another 4.1 points to reach a new historical minimum of -38.4 points. Interestingly, this entire drop was driven by older respondents, those aged over 35. We will come back to this point later in the article. At the same ...
Rate this blog entry:
Continue reading
1802
0 Comments
Write a Comment

Our Partners