During the last three months, the Agricultural Policy Research Center (APRC) of ISET-PI was working on a study about family farming in Georgia. Within this project, we conducted interviews with farmers and owners of agribusinesses. These interviews elicited many intriguing facets of Georgian agriculture, but one aspect I found particularly interesting was that Georgian farmers apparently have a rather negative view on agricultural jobs.

According to Geostat’s rapid growth estimates, Georgia’s real GDP declined by 0.5% in November 2014 (Chart 1). Despite this, growth in the first eleven months of 2014 was a robust 5%, which is certainly a much better result than most countries in the region could boast. The ISET fourth-quarter GDP forecast predicts 3.9% growth in the last three months of 2014.

The Business Confidence Index decreased slightly and registered 24.5 points in Q1 (previous quarter BCI was 24.9). Decrease in the retail sector business confidence is marginally the highest. This is driven by a sizeable drop in Consumer Confidence. Consumer Confidence Index (CCI) fell sharply since November 2014. The sales price expectations turned from negative to positive in the first quarter of 2015. Insufficient demand remains the most limiting factor for doing business in Georgia.

The study assesses a possible impact of USAID-funded agricultural projects in Georgia on U.S. commodity production and U.S. jobs and workers rights. USAID's yearly obligation requires confirmation that USAID-funded activities do not impact U.S. jobs and workers rights and do not result in increased competition of Georgian products with similar commodities produced in the U.S.

Green policies might stimulate growth in Georgia through various effects, depending on the sector they target. For example, monetizing emission reductions has a high potential for success and could be marketed to other countries as a sustainable solution to automotive emission.