ISET Policy Institute developed an advanced quantitative model to simulate the potential impacts of energy and environmental policies on the Georgian economy, the Climate Policy Analysis (ICPA), and investigated the economy-wide implications of three alternative policy options (the introduction of differentiated – by sector – carbon taxes, sectoral emission standards, and uniform carbon tax), complying with the emission targets defined in Georgia’s Climate Strategy and Action Plan, to find out the most effective measures and their welfare effects.

Governments around the world are racing against the clock to help communities damaged by the economic fallout of COVID-19. Eager to bring good news to their constituents, they are brokering deals likely to bring employment and much-needed international investments. Georgia, of course, is no exception. Recent FDI projects include a plastics processing plant with a stated capacity to employ 400 local workers in plastic waste recycling jobs and the associated sections of the supply chain.

On October 2nd, ISET was visited by representatives of FMO, the Dutch Entrepreneurial Bank, who came to talk about the Bank’s activities and its investments in Georgia. Mr. Jan-Willem Hoek, Investment Officer, and Ms. Naomi Campbell, Environmental & Social Officer, gave a presentation entitled ‘Doing Makes The Difference’, and explained the Bank’s commitment to global development and humanitarian outcomes.

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.

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.