The latest impact of Gavrilov’s visit to Georgia has fueled societal concerns about the economic consequences of deterioration in Russo-Georgian relations. For instance, due to the Russian government’s decision to cancel flights to Georgia, residents are beginning to worry about potentially adverse economic impacts on the tourism sector. ISET-PI has already discussed the expected impact of such a change, highlighting how these concerns might be unwarranted, as tourism accounts for 7.6% of the GDP, with Russian tourism contributing only 1.8% to the economy.

Agricultural production is associated with a variety of risks, including market, institutional, and production risks. An important production factor in agriculture is the weather. Its uncontrollable nature makes weather risk the prevailing risk to agricultural production. Farmers have various informal and formal means of transferring and mitigating these risks. Informal means include savings, diversification, off-farm activities, etc. The most common formal means of risk mitigation is insurance. Insurance is a contract that transfers the risk of financial loss from an individual or business to an insurance company.

It is always gratifying when an alumnus returns to ISET; it is naturally satisfying and pleasing for staff and faculty to hear about the successful exploits of a former student, but perhaps more importantly it is inspiring for the next generations to see first-hand what might be achieved with the right amount of hard work and dedication.

In September 2016, the average price of cooking one Imeretian khachapuri stood at 3.43 GEL. Compared to the previous month (August 2016) the Khachapuri Index gained 8.6%. The upward trend in Index at this time of the year is mostly related to the seasonal increase in the price of cheese (due to dwindling supply of fresh milk). While going up in monthly terms, the Index actually dropped 0.8% compared to the same time of last year (y/y). As shown in the chart, the main contributors to Khachapuri Index annual deflation were eggs (-7%) and cheese (-3%). All other ingredients increased in price: milk (1%), flour (2%), yeast (9%), and butter (17%). Interestingly, prices fell y/y for locally produced goods (eggs and cheese); prices went up for goods that are imported (yeast and butter) or use imported intermediate inputs in their production (flour and milk).

Reaching European and international standards of insolvency proceedings is considered one of the most important priorities of the Georgian authorities and its international partners for creating enabling business environment and fostering sustainable growth and job creation in the country.