ISET

ISET Economist Blog

A blog about economics in the South Caucasus.
Jun
30

Real Estate = Real Investment

Summer is a good time for traveling to the sea, but now I want you to join me in the journey in time. A memory from my childhood in the early 2000s was the discussion among people about the choice between “Khrushovka” and “Chekhuri.” Households were buying flats and making investments in real estate. It is difficult to explore the real reasons why people prefer real estate over other types of investments, but the some of the standard arguments which I was hearing were the following: “if something happens it is still a real estate,” “at least I will have ...
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Feb
12

“Just a Bit High”?

Interest in bank profitability is increasing every year. Google search data for Georgia shows that in 2017, there were 4,700 pieces (articles, blogs, comments and other documents) found for “Banks’ Profit” (ბანკების მოგება) while the same indicator in 2016 amounted to merely 2,990 pieces. In 2015, it was even smaller – 2,160 pieces. This growing interest has its own objective reason, which is simple:  In 2017, compared to the previous year, profits for commercial banks increased dramatically by 190 mln. GEL (if you like percentages, it is 28%), and ...
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Oct
09

One Notch More Attractive to Investors with Deep Pockets

Just recently, a rare occurrence made the headlines in Georgia: Moody’s Investors Service upgraded the government of Georgia’s local and foreign currency issuer ratings first time in seven years, to Ba2 from Ba3, with commentary that the outlook remains stable. This news was met with great excitement, but was soon overshadowed by the unfortunate news of Georgia’s downgrade on the Global Competitiveness Indicators, without fully appreciating or understanding the significance of the Moody's upgrade. SO WHAT IS IT ALL ABOUT? Moody's Investors Service provid...
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Jul
01

How Can Georgian Economy Benefit from Bitcoin?

RECENT DEVELOPMENTS For the first time in history, the price of Bitcoin broke its highest record (Figure 1) rising above 2,900 USD during the last week of June, 2017. One of the reasons why the market unexpectedly became optimistic about Bitcoin could be the fact that in April, the Japanese government formally accepted1 the cryptocurrency as a mean of exchange, which gave it more validity in Asia’s richest economy. Moreover, there has been significant growth of international money transfer services that use Bitcoin in order to move currency from one coun...
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Recent Comments
Guest — JohnDoe
Very nice article!
Friday, 07 July 2017 11:11 AM
Guranda Darchidze
I was always curious about this new trend called Bitcoin. Thank you for making it clear what it is about!
Friday, 07 July 2017 11:11 AM
Irakli Shalikashvili
Thanks a lot.
Friday, 07 July 2017 12:12 PM
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Jun
12

Wanna Get Rich? Make Batumi Your “Second Home”!

With 6.3 million tourists visiting the country in 2016, Georgia has become a popular tourist destination. In May, the number of international visitors (those who stayed in the country 24 hours or more) increased annually by 19% (compared to the same month in the previous year). While Tbilisi Airport is the main border-crossing point, in May, Batumi Airport overshot Kutaisi Airport, famous for its low costs flights, and experienced a 20% annual increase in the number of arrivals. The concert of legendary musical band “Aerosmith,” which took place near Bat...
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Apr
19

Bread Should Be Baked By the Baker!

"Sixty-Eight Million Dollars Were Given for Colleges Last Year: – if  the Mania for College Education Continues We May Soon Expect the Above State of Affairs" American and Western European visitors to Georgia are fascinated by the fact that middle-aged Georgian taxi drivers often brandish a couple of engineering degrees, while young hotel receptionists and shop assistants frequently come with law, business and international relations education. Having spent a couple of days in Tbilisi, visitors may come to imagine that Georgia is so abundant in huma...
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Recent Comments
Florian Biermann
Ok, the situation is dire, but what do you expect in a country with $4,000 per capita income? One should compare the situation in ... Read More
Wednesday, 19 April 2017 2:02 PM
Simon Appleby
One issue not discussed in the issue of military conscription. Suspended midway through last year, it was reinstated in Novemberht... Read More
Wednesday, 19 April 2017 2:02 PM
Eric Livny
Simon, thanks for your comment. First, I could not agree more. We actually do mention the current system of military conscription ... Read More
Wednesday, 19 April 2017 3:03 PM
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