Some weeks ago, I was invited by a development bank to the Hotel Eden in Kvareli, Kakheti, where we discussed Georgia’s possibilities to develop economically. When we talked about the potential of the manufacturing sector, one of the attending bank employees said: “The problem is that Georgia does not have Rudolf Diesel and Nikolaus Otto.”

Recently, one of the authors of this article was crossing a street with a crowd of people at green pedestrian light close to Marjanishvili metro station, when a Mercedes was accelerating and heading towards the people, ignoring the red light, making the crowd splash in all directions. A police car was standing nearby, doing nothing.

Based on the October data, the growth forecast for the last quarter of 2014 was revised upward from 1.1% to 3.6%. We have started to forecast the first quarter of 2015, with the initial forecast standing at 3.2%. Meanwhile, Geostat’s “rapid estimate” growth forecast for the month of October is 3.5%.

Investments in real estate compensates for risk premiums (compared to money deposits) and more than covers its costs (Mortgage interest rate). Average rental price for residential property continues to fall and reaches its historical minimum since March 2013.

On December 5, ISET hosted Azim Sadikov, IMF Resident Representative in Georgia. Mr. Sadikov presented the 2014 October Regional Economic Outlook.