This is a working note outlining the initial processes behind the SME Test Methodology. It is a notable deliverable part of the Developing an RIA SME Test Methodology for Georgia, while strengthening the capacity of the Government of Georgia to utilize SME RIA tools in practice Project, as funded by the UNDP and led by ISET Policy Institute.
For the fourth quarter of 2024, business confidence in Georgia decreased (by 9.7 index points) and reached 3.8. The highest decrease in business confidence is observed in the finance (-22.1) sector. The negative change in BCI for Q4 2024 was driven by decreased past performance as well as less optimistic expectations.
As advised by the European partners, in order to restore Georgia's trajectory towards EU membership, it is essential for the country to repeal the recently enacted laws concerning "Transparency of Foreign Influence" and "Protection of Family Values and Minors," as well as to adequately implement the nine requirements set forth by the European Commission for granting of EU candidate status to Georgia.
The U.S. presidential election is one of the most consequential global political events, influencing not only internal American policies but also its relationships with countries worldwide. It has far-reaching implications beyond the American citizenry that affect international partners, including Georgia. As a small, strategically located country in the South Caucasus, Georgia’s economy is deeply intertwined with the geopolitical environment and under the support of key allies like the United States.
The National Statistics Office of Georgia (GeoStat) has published its second quarterly bulletin for 2024. The publication highlights that the real GDP in agriculture, forestry, and fishing increased by 0.7% compared to the first quarter of 2023. Furthermore, agriculture contributed to 5.3% of the country’s total GDP during the first quarter of 2024.