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.

While COVID-19 pandemic had a negative impact on the current investment expenditure of Georgian ICT companies, investment and hiring is set to increase in the future for most firms in this sector.

The livestock sector plays a significant role in Georgian agriculture, accounting for more than half of total output. Although livestock farming is spread throughout the country, agriculture is dominated by livestock in the mountains, which cover over 50% of Georgian territory. The livestock sector contributed to around 4% of the country’s overall GDP in 2018, and dairy production remains one of the most traditional Georgian agricultural sub-sectors.

SCO looks for the opportunity to enhance the viability and competitiveness of sustainable mountain tourism development in the South Caucasus countries.

Can VAT exemption on dairy products produced from domestic raw milk boost the competitiveness of Georgian dairy sector? The objective of the study was to estimate the potential impact of VAT exemption on dairy products on the competitiveness of the dairy sector in Georgia.