In August 2020, Georgian power plants generated 949 mln. kWh of electricity. This represents a 7% decrease in total generation, compared to the previous year (August 2019, the total generation was 1,020 mln. kWh). The decrease in generation on a yearly basis comes from the decrease of 2.5% in hydropower generation, more than a 9% decrease in wind power generation and a 35% decrease in thermal power generation.

The Law of Georgia on Energy and Water Supply, adopted in December 2019, envisages certain general provisions concerning vulnerable customers. The Law states that the Georgian government and local government bodies, in consultation with other interested parties, shall develop special programs/measures/benefits to ensure the supply of electricity and natural gas for vulnerable customers.

The COVID-19 outbreak has negatively affected the Georgian economy through a reduction in FDI, exports of goods and services, and remittances. In addition, uncertainties caused by the pandemic and containment measures hit consumption and domestic investment. As a result of this reduction in aggregate demand, combined with increased production costs due to pandemic-related constraints, GDP is expected to contract by 5% in 2020 according to NBG’s latest monetary report.

It is always a cause for celebration whenever a member of the ISET community – be they student or faculty – achieves new success, but this month has borne witness to some unprecedented good news. Professor Daniel Levy, who has visited ISET as a visiting professor every year since 2011 and is one of the institute's most loyal friends, has been elected as the 26th President of the Israeli Economics Association.

Recently, Geostat has released the preliminary estimate of real GDP growth for the second quarter of 2020, which now stands at -12.6%. The real GDP growth rate contracted by 7.7% and 5.5% year-on-year in June and July 2020, respectively. Consequently, the estimated real GDP for the first seven months of 2020 amounted to -5.8%.