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%).

In Georgia, the average cost of a room in a 3-star hotel was 141 GEL per night in March 2022, while the average cost of a room in a 4-star hotel in Georgia was 231 GEL per night and the average cost of a room in a guesthouse was 103 GEL per night. The average cost of a room in a 5-star hotel in Georgia in March 2022 was 413 GEL per night. In Tbilisi and Kakheti, the average price was 493 GEL, followed by Guria - 398 GEL and Adjara - 390.

Financial institutions play a pivotal role in the development of the Georgian economy. Indeed, while the financial system remains dominated by commercial banks, microfinance institutions (MFIs) are the biggest non-bank lending institutions based on portfolio volume. The PMC RC periodically publishes sector snapshots on state of MFI sector in Georgia and in this bulletin the state of sector during the period of 2018-Q1 2022 will be overviewed.

In March 2022, the number of Russian, Belarusian and Ukrainian travelers entering country increased significantly and reached 45.1 thsd, 20 thsd and 16.9 thsd, respectively. The month over month (MoM) increase was especially high for Belarus (281%) and Russia (69%). Meanwhile, the exit from Georgia by Belarusian and Russian visitors has also shown a significant MoM increase. In March 2022, remarkable differences can be noticed between the number of entries and exits, indicating that significant part of the travelers, especially from Russia and Belarus, have not left the country. In March 2022, the travel receipts from Belarus and Russia showed MoM increase of 551% and 133%, respectively, which again strengthens the observation of the rapid inflow of travelers from Russia and Belarus.

In Georgia, the average cost of a room in a 3-star hotel was 152 GEL per night in March 2022, while the average cost of a room in a 4-star hotel in Georgia was 246 GEL per night and the average cost of a room in a guesthouse was 114 GEL per night. The average cost of a room in a 5-star hotel in Georgia in March 2022 was 406 GEL per night. In Tbilisi, the average price was 574 GEL, followed by Kakheti - 451 GEL, Samtskhe-Javakheti - 373 GEL and Guria - 352 GEL.

In March 2022, the number of persons receiving a monthly salary increased by 4.9% compared to the corresponding period of 2021 and by 5.3% compared to the corresponding period of 2020. From October 2021 to March 2022, the total number of vacancies published on jobs.ge amounted to 32,380, which was 91% higher compared to the corresponding period of 2020-2021 and 39% higher compared to the corresponding period of 2019-2020. From October 2021 to March 2022, a total of 2,330 vacancies were published in the field of informational technologies, which was 33% higher than the corresponding period of 2020-2021 and 48% higher compared to the corresponding period of 2019-2020.

The marine fishing cluster in Georgia is mainly based in Poti in the Samegrelo-Zemo Svaneti region. The primary activity for companies therein is fishing in the Black Sea. Currently, enterprises mainly deploy outdated, Soviet-era vessels in their operations, which are in acute need of upgrading. However,significant measures have been taken to tackle this pressing challenge. This issue is largely based on the “Marine Fishing Cluster Diagnostic Study in Samegrelo-Zemo Svaneti Region” published by PMC Research Center for United Nations Industrial Development Organization (UNIDO) under the “EU Innovative Action for Private Sector Competitiveness in Georgia (EU IPSC).”