The main objective of this project was to analyse the predicted potential for Georgia to specialize in the production of various agricultural goods. APRC assisted the German Economic Team within this project with regards to: searching, collecting and summarizing data, reviewing existing literature to study the potential of agricultural goods which have a relative comparative advantage compare to other.

ISET-PI analyzed the potential for Georgia to specialize in the production of several types of engineering goods: Insulated wire and cable; Pleasure and sport vessels; Cargo containers; Derricks, cranes, and straddle carriers.

Oil prices have endured a large and persistent decrease due to increased worldwide production and the weakness of global demand. Prices are soon expected to stabilize around USD 60/barrel. ISET-PI and GET have focused on the improved terms of trade that Georgia could potentially see due to its high share of energy imports compared to its GDP indicators.

Georgia’s wine industry is heavily dependent on export to CIS countries, especially Russia. Two main short-run risks associated with the Russian market presently affect Georgian wine exports: The possibility that Russia might cancel its free trade agreement with Georgia, and the economic slowdown in Russia which could lead to reduced demand for Georgian wine.

For resilient economic development in Georgia, the country should encourage exports of higher-value added goods. In this report, ISET-PI and GET have found that Georgia might be able to develop a comparative advantage when it comes to exporting higher-value energy-intensive products. According to projections of its electricity network operator, Georgia will develop excess capacities of low-cost electricity in the next decade.

The Policy Brief predicted potential for Georgia to specialise in the international provision of business services (PP/01/2015). Potential was predicted in the service trade category of “other business services”, encompassing mainly.