ISET Policy Institute, with the support of UNIDO, conducted a study to map emerging and potential clusters in Georgia with a focus on the manufacturing and agri-business sectors. The objective of the project was to enhance entrepreneurship and business sophistication by strengthening the capacities of government and local entities to develop and operate clusters and supporting companies directly with strategic investments and to better connect with diaspora groups, while also demonstrating the effectiveness of these strategies to businesses.

In 2018, FDI in agriculture constituted 15.9 mln. USD. While the total FDI in 2018 was lower than in 2017, FDI in agriculture has significantly increased (by 28.2%). The highest FDI in agriculture was observed in the second quarter of 2018, while there was divestment (negative FDI) in the first quarter of 2018. The divestment was quite small and was followed by a significant increase in other quarters.

In February 2019, Georgian power plants generated 939 million kWh of electricity, which compared to the previous year represents a 0.5% increase in total generation. On the demand side, consumption amounted to 1,037 mln. kWh, a 2% decrease on an annual basis. Although the negative gap between generation and consumption decreased by 22% (from -126 to -98 mln. kWh), compared to the corresponding month of the previous year, it remained substantial.

Based on January’s data, we expect annual growth in 2019 to be 4.4% in the worst-case or “no growth” scenario, and 5.5% in the best-case or “average long-term growth” scenario. Our “middle-of-the-road” scenario (based on average growth over the last four quarters) predicts 4.7% real GDP growth.

A study of the Georgian tea sector’s competitiveness has been undertaken to reveal the potential for investment. The European Bank for Reconstruction and Development (EBRD) has been increasing its support for private sector development in Georgia which, alongside recent government reforms, is expected to improve the investment climate, giving further momentum to the EBRD's diversifying portfolio.