The Georgian Business Confidence Index (BCI)* has decreased slightly, reaching 27.0 index points, which is a -2.0 index point loss over the previous quarter. The third-quarter drop in the BCI was mostly driven by the notable decline of the Expectations Index, which judging from the previous quarter's findings, may be explained by private sector realignment with reality rather than by worsened economic conditions.

In July 2017, Georgian power plants generated 1,247 mln. kWh of electricity. This corresponds to an 18% increase in total generation compared to July 2016, when total generation of electricity was 1,061 mln. kWh. Generation also increased by 10% compared to June 2017 (1,138 mln. kWh).

We started forecasting the annual growth rate at the start of 2014 (see our January 2014 and February 2014 publications for a note on methodology). Based on January’s data, we expect annual growth in 2017 to be 6.2% in the worst-case or “no growth” scenario, and 6.6% in the best-case or “average long-term growth” scenario. Our “middle-of-the-road” scenario (based on the average growth in the last four quarters) predicts a 6.3% real GDP growth in 2017.

Georgia’s flagging agricultural sector is receiving assistance from a number of international governments, organizations, and institutions, and ISET is right at the heart of efforts to revitalize this essential part of the national economy.

On July 18, 2017, Mr. Nicola Mariani, managing partner of Dechert Georgia LLC, visited ISET within its Summer School programme and discussed economic reforms, political transition, and development organized by the International School of Economics (ISET).