ISET

On May 22, ISET hosted Francois Painchaud, the IMF Resident Representative in Georgia. Mr. Painchaud presented the 2017 May Regional Economic Outlook for the Caucasus and Central Asia, highlighting the three main areas of the global and regional environment, outlook and policy actions, and policy priorities.

At the beginning of the presentation, Mr. Painchaud overviewed the main trends in the global and regional environment. Firstly, the IMF predicts higher than expected real GDP growth in 2017, mainly at the expense of higher growth projections in the US, China, Russia, and emerging markets.

ISET second year students continued their series of policy seminars, this time focusing on the Georgian tourism sector. Shako Gobronidze, Diana Nersisyan, Robizon Razamadze, and Revaz Surguladze presented on the topic of seasonality, which both poses various challenges and grants opportunities for the Georgian tourism sector.

Seasonality affects the development of the tourism sector in several ways. By concentrating income generation within a limited timeframe, it creates a degree of uncertainty for investors, which could deter efforts to attract investments, especially for small tourism startups. Uneven demand due to seasonality also affects other businesses and sectors in the tourism supply chain, such as taxis, hotels, distribution, and agriculture. Finally, seasonality lowers the quality of service in the tourism sector, by giving fewer incentives to employers to train their staff or search for the best talent.

On April 10, ISET students delivered yet another policy seminar. A presentation entitled “Foreign Direct Investment (FDI) & Economic Growth. Case of Georgia” was delivered by Givi Gujaraidze, Tinatin Mumladze, Kristine Gureshidze, and Shota Bakhuashvili under the supervision of Eric Livny, President of ISET, and Yaroslava Babych, Head of Macroeconomic Policy Research Center at ISET Policy Institute. The presentation was mostly oriented towards the case of Georgia. It aimed to highlight the importance of FDI for the Georgian economy and show the impact of FDI on growth rates of different sectors of the economy. The presentation provided information about the country’s investment environment: why is Georgia an attractive country for foreign investors and why is it easy to do business in Georgia. Additionally, the last part of the presentation discussed examples of successful FDI projects in different areas.

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