GE EN
Economics
Cooperation between Gwp Training Academy and USAID to implement author...

The goal of the joint project is to create and implement authorized professional programs in the field of water supply and sewage systems of Georgia in accordance with European standards.The partnership aims to create innovative approaches and strengthen links between vocational skills training and high-paying employment opportunities, which will contribute to the sustainable development of Georgia's economy and the reduction of unemployment.International hydro-engineers and experts will be invited to develop and implement authorized programs at gwp training academy.Within the framework of cooperation between Georgian Water and Power and USAID, authorized water supply and sewage systems management programs will include persons interested in starting a career in the field of water supply. Also, through authorized retraining programs, existing employees of the company will be qualified for further career development.During 2024-2025, 90 beneficiaries will participate in trainings. The process will be fully implemented on the basis of the training center of Georgian Water and Power.USAID's "Employers for Vocational Education" program aims to establish a link between human capital development and employment opportunities, which will reduce the level of unemployment and contribute to the development of a sustainable economy in the country. To achieve these goals, the program has already signed more than 60 partnerships with employers operating in transport, construction, logistics, information and communication technologies, healthcare, hospitality, services and other fast-growing sectors.The partnership between gwp and USAID's "Employers for Vocational Education" program is an important step in the development of the water supply sector in Georgia and the creation of a qualified workforce in the field.

1716465614

The national airline of Tajikistan, Somon Air, started operating at Tb...

During the summer navigation season, flights from Dushanbe to Tbilisi will be operated twice a week, every Monday and Wednesday.The airline will perform flights with B737-800 and B737-900 type aircraft. Somon Air operates regular and charter flights in 25 countries.

1716445138

BOGG reduced yield on GEL deposits

Saving deposit can be opened from 10 GEL, USD and EUR. The change only affected the GEL deposit.Until May, the GEL deposit rate was adjusted in March as well. Interest on term deposit decreased from 11.1% to 10%.In the market, the portfolio of deposits of individuals of the Bank of Georgia is the largest. BOGG, with a market share of up to 46%, is the market leader.The bank offers in 4 currencies. The annual yield of a 1-year deposit in GEL (subject to withdrawal at the end of the term) is 10%, in USD and GBP - 1.5%; in EUR - 0.4%.

1716444781

Yields On Deposits Are Down – Banks' Rating

A resident, as well as a citizen of another country, can make a fixed deposit in 3 currencies, GEL, USD and Euro. In British pounds in the Bank of Georgia and TBC (BOGG - 1.5%; TBC - 0.15%).According to the explanation of the head of the financial stability department, Davit Utiashvili, the rate reduction is related to the softening of the monetary policy. The decline in the refinancing rate was reflected in the market a little late.Systemic banks lowered rates in April. TBC reduced it in GEL, as well as in USD. The Bank of Georgia only reduced it in GEL, on the contrary, it increased the currency. It increased by 0.5% in the USD.At the moment, Credo offers the highest benefit in GEL -2.8% to its customers, although the former MFO is not included into the TOP 7 of billionaires. The rating represents banks with a deposit portfolio of more than 1 billion.

1716444537

NBG Reduces Monetary Policy Rate To 8%

Georgia has maintained a low inflation environment, with headline inflation remaining below the target. In April 2024, the overall price level increased by 1.5 percent annually, while core inflation stood at 2.3 percent. A slight increase in the inflation rate compared to the previous month was due to globally increased oil prices caused by acute geopolitical tensions. Timely and sufficiently tight monetary policy stance has successfully normalized the inflation of domestically produced goods around the target. According to the latest forecast, other thing equal, inflation is expected to remain below the target of 3 percent in the first half of 2024, while stabilizing close to it in the medium term.Despite positive trends, overall uncertainty has increased. Inflationary pressures have risen due to both domestic and geopolitical developments. Meanwhile, inflation expectation measures have seen a slight increase. Additionally, the NBG estimates that the gap between economic activity and its pre-pandemic trend has fully closed. As a result, higher-than-expected demand can also trigger inflationary risks. This strong demand is partly driven by increased credit activity. However, according to the baseline scenario, economic activity would stabilize around its potential level, with real growth reaching 5.6%. In this case, demand-side inflationary risks would not materialize.In light of these factors and analysis of current domestic and external challenges, the National Bank of Georgia has decided to reduce monetary policy rate by 0.25 percentage points to 8.00 percent. The NBG will continue to normalize the monetary policy rate only gradually and cautiously. If factors amplifying inflation expectation risks become more pronounced, the NBG may need to maintain the current tight stance for a longer period or even tighten policy further.The NBG closely monitors economic and financial market developments and will use all available tools to ensure price stability.The next meeting of the Monetary Policy Committee will take place on June 19, 2024.

1716444398

Georgian tech agency introduces new Gov’t initiatives to “leading” sta...

The GITA said the “leading” visiting startup accelerators included Startupbootcamp/Rainmaking, Plug and Play, UPTEC, Baltic Innovation Agency, USMAC, 2080 Ventures, Startup Wise Guys, 500 Global in Eurasia and German Accelerator, with the guests presenting their visions and plans for the implementation of the GITA 2.0 programme in Georgia.“The body noted the role and involvement of international accelerators was “very important” and ensured “transformation of the country as a hub of innovations”.The declared priorities of the Georgian Government are to support the startup ecosystem - therefore, we have been actively cooperating with both European and American accelerators for years, and based on the new initiatives of the Government, we will give the country even more new opportunities to position itself as a regional leader in the innovation ecosystem”, Kasradze said.“It is very important when such large, globally successful accelerators are interested in entering Georgia - this once again indicates significant achievements of the Georgian startup ecosystem”, he added.The GITA said it had provided a grant funding of ₾38 million ($13 mln) to over 200 innovative startups of “global potential”, with the startups making ₾0.5 billion ($182 mln) in “private financial benefits” while creating up to 3,000 new jobs.

1716290331

Georgia’s electricity generation, consumption shrank in April

During the same period, electricity consumption shrank by 4%, mainly at the expense of decreased consumption by A/R of Abkhazia.Balancing electricity prices rose by 4% annually, reaching 5.71 USDc/kWh, driven primarily by the price of natural gas for thermal generation. Since April 2024, Georgia has started exporting electricity, with Turkey being the main export destination.

1716288430

80% of long-term retail deposits are in foreign currency

According to the NBG's interactive review, the annual growth rate of foreign currency deposits is 1.1%. As of the statistics of the last reporting month of March, the growth rate in GEL, slowed down by 0.8 percentage points.Only 19% of long-term deposits of individuals (term: from 5 to 10 years) are in the national currency. 5-10 year savings of retail depositors is 51.3 million GEL. The rest >80% are foreign currency deposits. Out of 269 million GEL, the equivalent of 217 million GEL in foreign currency (mainly USD and Euros).In total, as of Q1/2024, 14.2 billion GEL of retail deposits are placed in the banking sector.

1716287929

NBG Still Gets Active In The Interbank Foreign Exchange Market

At the same time, the number of transactions has increased to 2%, while it reached 40% in the same period last year.98.7% of activities in the foreign exchange market come from spot transactions and amount to $2.99 billion. The share of the National Bank of Georgia in total trade was 4.3%. On Bmatch, the central banks bought up to $128 million.Share of the NBG in total foreign exchange trade by months (2024-2023)

1716287630

External merchandise trade 2.7 percent lower year-on-year

The negative trade balance was USD 3 037.1 million in January-April 2024 and its share in external trade turnover constituted 46.3 percent.In January-April 2024 the share of the top ten trading partners by exports in the total exports of Georgia amounted to 79.8 percent. The top partners were Kyrgyzstan (USD 291.6 million), Russia (USD 230.4 million) and Kazakhstan (USD 208.3 million).In the first quarter of 2024, the share of outgoing freight represents 29.4 percent of the railway transported freights, while the share of incoming freight was 70.6 percent.In the first quarter of 2024, the sender country of 53.5 percent of total incoming rail freight was Russian Federation, 22.9 percent was sent by Azerbaijan. The share of other countries sending cargo was less than ten percent each (23.6 percent combined).In the first quarter of 2024, Russian Federation was the final destination for 10.2 percent of total outgoing freight. The share of other receiving countries was less than ten percent each (89.8 percent combined).The breakdown of the total transit freight2 by the final destination country was as follows: Netherlands – 16.2 percent, Turkey – 8.1 percent, China - 7.9 percent, Italy – 3.3 percent, Ukraine – 3.3 percent, Romania – 2.4 percent, and elsewhere was for the rest. In the same period, Brazil was the sender country of 2.7 percent of the total transit freight, China – 1.5 percent, Ukraine – 1.4 percent, Greece – 1.3 percent, USA – 1.1 percent, and elsewhere was for the rest.In the reporting period, 32.7 percent of the total freight were metal ores and other mining and quarrying products, 28.4 percent were coal, crude oil and oil products and natural gas, and 9.0 percent were food products, beverages and tobacco.The distribution by type of goods was different in the case of freights transported domestically in the first quarter of 2024, as the share of metal ores and other mining and quarrying products equaled 61.2 percent of total, and the share of coal and lignite; crude petroleum and natural gas amounted to 12.6 percent, while the share of other nonmetallic mineral products amounted to 11.6 percent.In the first quarter of 2024, the number of passengers transported by the Georgian Railway decreased by 1.4 percent compared to the corresponding period of the previous year and amounted to 465.9 thousand persons. At the same time, passenger turnover decreased by 6.0 percent and amounted to 128.3 million passenger-kilometer.In the first quarter of 2024, the number of passengers transported within the country amounted to 462.1 thousand persons, which represents 99.2 percent of the total number of passengers carried and 0.5 percent less than the same figure to the corresponding period of 2023. At the same time, the number of passengers transported internationally amounted to 3.8 thousand, which is 50.7 percent less than the corresponding figure of the previous year. The country of embarkation was Armenia for 56.1 percent of internationally transported passengers while the country of disembarkation was Armenia for 43.9 percent of international transported passengers (no passengers were transported from/to any other neighboring country in 2024)

1716200115