On August 3-8, PMC Research conducted a six-day training course on digital marketing for 35 second- and third-round rural development grant competition beneficiaries in Khulo municipality in order to boost the visibility, and ultimately the revenues, of their businesses.
We are pleased to announce that PMC Research recently became a partner of the Atlas Network through which it will contribute to making the world freer, and more prosperous, transparent and accountable, with the principles of individual liberty, property rights, limited government, and free markets all ensured.
On July 9, PMC Research presented the findings of its research entitled “Relations between China, the European Union and Georgia: Analysis of Economic and Political Relations” and subsequently held a discussion thereon.
On June 25, Dr. Giorgi Khishtovani, Director at PMC Research, participated in the German EU Pre-Presidency Conference entitled “Shaping the Future of Europe,” which was dedicated to debating current EU issues, and was organized by the Trans European Policy Studies Association (TEPSA) and the Institute for European Politics (IEP).
The spread of novel coronavirus COVID-19 has resulted in global pandemics, which was followed by an abrupt economic crisis, as economies stood still in order to overcome the threat to people’s lives. In this bulletin, we overview the readiness to the healthcare and economic crisis, the evolution of the pandemic and characteristics of the lockdown for the six countries in the Black Sea Region.
By the end of the second quarter of 2020, loans and deposits, expressed as a percentage of GDP, increased by 3.6 and 4.9 percentage points, respectively, compared to the beginning of the year;
By the end of the second quarter of 2020, bank assets, expressed as a percentage of GDP, increased to 98.4%;
By the end of July of 2020, the volume of loans was increased by 19%, compared to July of 2019;
The average interest rates on loans in January-July of 2020 denominated in national currencies were 0.9 percentage points higher than in January-July of 2019, while the average interest rates on loans denominated in foreign currencies were 0.8 percentage points less;
By the end of July of 2020, the volume of deposits in Georgia was increased by 21%, compared to July of 2019;
The average interest rates on deposits in January-July of 2020 denominated in national currencies were 1.2 percentage points higher than in January-July of 2019, while the average interest rates on deposits denominated in foreign currencies were 0.4 percentage points less;
In January-July of 2020 trade had the highest share of total loans with 29.5%;
In January-July of 2020, share of construction in total loans increased by 3.6 percentage points, while share of financial intermediation decreased by 8.2 percentage points, compared to the corresponding period of 2019;
According to the World Bank, Georgia’s ratio of non-performing loans to total loans decreased in 2019, compared to 2018, by 0.8 percentage points and dropped to 1.9%;
By the end of July of 2020 the rates of dollarization on loans and deposits were increased by 0.3 and 8 percentage points, compared to the corresponding period of 2019. The rates rose to 56.9% and 61.3%, respectively.
The number of international travelers declined by 96.4% in August compared to the same period of 2019, while the number of international visitors fell by 96% and the number of international tourists fell by 95.4%;
In the first 8 months of 2020, revenues from travel amounted to $483 mln, which is 78% lower than the same period in 2019;
In Q2 2020, compared to Q2 2019, turnover of accommodations declined by 66%, and turnover of food facilities declined by 37%;
In August 2020, compared to August 2019, yearly Hotel Price Index decreased by 32.1% in Guria and 21.7% in Adjara;
In August 2020, compared to August 2019, the average price of guesthouses in Guria decreased by 58%, while the average price of 3-star hotels decreased by 35%;
In August 2020, compared to August 2019, the average price of 4-star hotels decreased by 38%, while the average price of 5-star hotels decreased by 25%. The average prices of guesthouses and 3-star hotels registered a more modest decline.
In Georgia, the average cost of a room in a 3-star hotel was 128 GEL per night in August 2020. While the average cost of a room in a 4-star hotel in Georgia was 229 GEL per night and the average cost of a room in a guesthouse was 74 GEL per night. The average cost of a room in a 5-star hotel in Georgia in August 2020 was 367 GEL per night. In Guria, the average price was 776 GEL, followed by Tbilisi - 426 GEL, Kakheti - 360 GEL and Adjara – 346 GEL.
The number of international travelers declined by 95.6% in July compared to the same period of 2019, while the number of international visitors fell by 94.8% and the number of international tourists fell by 93.5%;
In July 2020, compared to July 2019, the average prices of 5-star hotels decreased by 23%, which is the highest decline among the categories of the hotels;
In July 2020, the hotel prices have decreased in 8 regions (out of 11), compared to July 2019. The most hit regions are Guria (-38.1%), Adjara (-26.4%) and Samtskhe-Javakheti (-23.5%);
Due to distorted price data, the declines in hotel prices illustrated by our analysis are underestimated. Moreover, the analysis in July can be deemed conclusive just for Guria, Adjara and Samtskhe-Javakheti.
The paper reviews developmental implications of labour migration from Central Asia, analyses policy gaps in development-oriented migration management and offers recommendations to facilitate impactful engagement of local authorities in migration governance.
This paper is written by Dr. Giorgi Khishtovani, Director at PMC Research, with contribution from Maya Komakhidze, researcher at PMC Research.
The aim of this document is to identify the key economic policy/regulatory challenges in Georgia’s tourism value chain and to facilitate dialogue between private and public sectors including a wide spectrum of civil society and political representatives.
This study reviews each activity defined in the 2019-2020 action plan, which aims to develop the infrastructural part of the penitentiary system, and evaluates its implementation against pre-defined indicators.
It’s been five years after DCFTA was implemented and two years have passed since FTA with China. It is interesting to conduct ex-post analysis to find out how these FTAs affected Georgia’s economy. Goal of ex-post analysis will be to determine what qualitative and quantitative impacts are observed after Georgia signed DCFTA and FTA with China, on macro and sectoral levels. Also, the research paper will try to find if DCFTA and FTA with China resulted in welfare gains. To be more precise, the paper aims to determine whether the increase in trade was a result of trade creation or trade was diverted.Another aim is to analyze quantitative effects on imports and exports on different aggregation levels. For conclusion, research paper will analyze differences and similarities between DCFTA and FTA with China and based on these empirical findings, the research will identify possible threats and opportunities, which may come from future free trade agreements.