17
January
2025
This note provides an overview of recent developments regarding Georgia’s foreign exchange Gross International Reserves (GIR), offers insights into some aspects of reserve adequacy, and central bank’s safeguards principles in the context of heightened political uncertainties. It appears that the GIR are likely inadequate to withstand prolonged political uncertainties. Furthermore, the National Bank of Georgia's (NBG) governance and regulatory frameworks are not presently equipped to counter these challenges.
14
January
2025
The political and social turmoil surrounding the 26 October parliamentary elections and their aftermath have significant implications for Georgia's business environment. The prolonged polarization, government-led violence against protesters, and the suspension of EU accession talks create uncertainty that can negatively influence the economic climate in multiple ways.
10
January
2025
Apple production is mainly concentrated in the Shida Kartli region, which accounted for 71% of total production in 2023; beyond which, Mtskheta-Mtianeti contributed 8.5%, while Kvemo Kartli accounted for 7.3%.
09
January
2025
The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury recently imposed sanctions on Bidzina Ivanishvili, the billionaire widely regarded as Georgia's de facto ruler and the honorary chair of the Georgian Dream party. These measures, which include asset freezes and travel bans, aim to address democratic backsliding in Georgia and Ivanishvili's personal role in the country's perceived drift toward Russian influence.
08
January
2025
According to GeoStat’s preliminary estimates in the second quarter of 2024, Georgia’s nominal GDP reached GEL 24,855.7 million, with a year-over-year real GDP growth of 11.0% and a GDP deflator change of 4.3%. The growth was driven by significant increases in value-added across various sectors: Education activities rose by 35.6%, Information and communication rose by 32.8%, Construction by 30.9%, Financial and insurance activities by 22.9%, Public administration and defense, including social security by 14.7% and Wholesale and retail trade, including repair of motor vehicles and motorcycles by 11%. Conversely, there was a decline in value-added in electricity, gas, steam, and air conditioning supply by 13.6% and in Real estate activities by 4.9%.
