In this issue, we overview major economic indicators in the construction sector, construction permits, commercial bank mortgage loans for real estate purchases, and construction-related price indices. In addition to that, the results of the BAG business index survey regarding the sales, sales prices, employment, and factors hindering business activity in the construction sector are also provided.
According to a survey of Georgian economists, the economic climate in the country in the second quarter of 2022 has improved compared to the first quarter of 2022, as well as compared to the second quarter of 2021.
With respect to the covered period, the surveyed Georgian economists positively assessed Georgia’s present economic situation. Meanwhile, in the first quarter of 2022 and in the second quarter of 2021, the assessment of the economic situation for the respective quarters was negative. Thus, in the second quarter of 2022, their assessment of the present economic situation has significantly improved compared to both quarters.
The surveyed economists’ predictions for Georgia’s economic situation for the next six months were also positive. In fact, their expectations were much more optimistic compared to the predictions they made for the next six months in both the first quarter of 2022 and the second quarter of 2021.
In May 2022, the number of persons receiving a monthly salary increased by 5% compared to the corresponding period of 2021 and by 14.6% compared to the corresponding period of 2020.
From December 2021 to May 2022, the total number of vacancies published on jobs.ge amounted to 33,703, which was 67% higher compared to the corresponding period of 2020-2021 and 101% higher compared to the corresponding period of 2019-2020.
From December 2021 to May 2022, a total of 9,635 vacancies were published in the field of sales/procurement, which was 91% higher than the corresponding period of 2020-2021 and 128% higher compared to the corresponding period of 2019-2020.
As Georgia struggles to overcome various social and economic problems, pensions remain among the country’s central issues.
For many years, Georgia’s pension system had comprised only a state pension based on a solidarity principle. However, the state pension had not been sufficient to allow retired persons to maintain acceptable living standards. Therefore, pension system reform was a topic of hot discussion for a long time in Georgia and pertinently, in 2018, a funded pension scheme was integrated into the pension system.
The following bulletin will review the key changes that have taken place in the pension system over the last five years.
• Following the easing of travel restrictions by many countries, the outbound international visits by residents of Georgia have shown a significant recovery, reaching almost half of the pre-pandemic level by Q1 2022.• The main destination for outbound Georgian visitors was Turkey, followed by Russia, Armenia, and EU countries. • In Q1 2022, the expenditure of outbound visitors reached GEL 285 mln, which is 14% lower compared to Q1 2020, and 21% lower compared to Q1 2019.
In Georgia, the average cost of a room in a 3-star hotel was 148 GEL per night in May 2022, while the average cost of a room in a 4-star hotel in Georgia was 255 GEL per night and the average cost of a room in a guesthouse was 105 GEL per night.
The average cost of a room in a 5-star hotel in Georgia in May 2022 was 468 GEL per night. In Kakheti, the average price was 581 GEL, followed by Tbilisi - 558, Guria - 474 GEL and Adjara - 457.
PMC RC stands firmly with Ukraine, supports its sovereignty and territorial integrity, and condemns Russia’s ongoing military aggression. While the most devastating outcome of this war is the humanitarian catastrophe in Ukraine and the destroyed lives of people, it is also essential to discuss the consequences of this war on the global economy.
Georgia lacks its own production and is highly dependent on imports of essential food and energy goods. Considering Russia and Ukraine are prominent players in the global trade of food and agricultural products, while Russia is one of the world’s largest exporters of energy products, in this bulletin, we discuss threats to the food and energy security of Georgia amid Russia-Ukraine War.
In April 2022, the number of persons receiving a monthly salary increased by 3% compared to the corresponding period of 2021 and by 15% compared to the corresponding period of 2020.
From November 2021 to April 2022, the total number of vacancies published on jobs.ge amounted to 32,301, which was 81% higher compared to the corresponding period of 2020-2021 and 69% higher compared to the corresponding period of 2019-2020.
From November 2021 to April 2022, a total of 9,112 vacancies were published in the field of sales/procurement, which was 109% higher than the corresponding period of 2020-2021 and 82% higher compared to the corresponding period of 2019-2020.
In recent years strengthening vocational education and training (VET) has been among the top priorities of Georgia’s education strategy. In the process, several important reforms have been undertaken including the establishment of the “Vocational Skills Agency”, with the primary goal of increasing private sector participation in VET, and amendments to the rules regarding the authorization of VET institutions, which are widely believed to improve the quality of education. Moreover, specific goals were set under the “2021-2025 Vocational Education Strategy” such as increasing the number of VET students to support the country’s socio-economic development, ensuring their competitiveness by developing professional and general skills, and providing lifelong educational opportunities. The following bulletin discusses the trends of development in VET in Georgia over the last five years.
In 2021, the recovery of international tourist arrivals to Georgia (31% of 2019 figure) was lower both compared to European (38%) and Central/Eastern European (36%) averages, but higher compared to the global average (28%).
Among the selected international benchmark countries (Albania, Croatia, and Greece), Georgia performed the worst, while Albania almost recovered to 2019 levels (89%).
Compared to its neighboring countries, Georgia performed worse than Turkey (55%) and Armenia (46%), but better than Azerbaijan (25%).