The development of the ICT (Information and Communications Technology) service sector is one of the strategic priorities for the Georgian economy. The sector is characterized by the unique potential to contribute to the country’s long-term growth, create positive productivity spillovers into other industries, and, in the longer term, transform the existing industrial structure of Georgia by moving away from primary production and primary exports.
Hazelnuts are one of Georgia’s top ten export commodities. During 2010-2020, hazelnuts accounted for around 4.4% of Georgia’s total exports (GeoStat, 2021).
On February 15th 2021, export quotas on wheat, rye, maize, and barley entered into force in Russia.
ISET Policy Institute’s researcher Ia Katsia was invited to TV 1 to talk about a possible Russian embargo on Georgian wine and mineral water exports. According to Russian Media sources, the Russian Duma is going to propose a ban on Georgian exports. Ia Katsia spoke about the possible effects of such an embargo and highlighted the importance of the Russian market as an export destination. She also discussed the most recent Russia ban on Georgian exports in 2006; at that time, wine and mineral water exports were concentrated on the CIS, and especially Russia. However, as of 2016, wine companies managed to diversify their export markets and added 46 new export destination countries for their products. She also mentioned the role of the Government in promoting Georgian wine and finding new markets. Watch the video from TV 1 to learn more.
The COVID-19 outbreak has negatively affected the Georgian economy through a reduction in FDI, exports of goods and services, and remittances. In addition, uncertainties caused by the pandemic and containment measures hit consumption and domestic investment. As a result of this reduction in aggregate demand, combined with increased production costs due to pandemic-related constraints, GDP is expected to contract by 5% in 2020 according to NBG’s latest monetary report.