Analysis of the preliminary data on FDI for the first half of 2018 revealed the following general findings:
The financial, energy, and construction sectors attracted the most FDI;
Azerbaijan, the United Kingdom, and the Netherlands were the largest investing countries for Georgia;
Based on the cumulative values of the past 4.5 years, transports and communications is the most attractive sector for FDI in Georgia;
The shares of FDI from China and the EU in the total FDI in Georgia were their highest since 2014;
Based on a semi-annual analysis, reinvestments surpassed equity for the first time in th e available data of 2013-2018.
In August 2018, the hotel price index increased only by 0.01% compared to July 2018;
In August 2018, the daily rates for standard double hotel rooms increased the most in Guria (7.6%), while the hotel prices decreased mostly in Samtskhe-Javakheti (-1.6%);
In August 2018, the 3-star, 4-star and 5-star hotel price index decreased by 0.9% compared to July 2018;
In Guria the 3-star, 4-star and 5-star hotel price increased by 18.4%, such price increase was primarily due to 3, 4 and 5 star hotel price increases in Ureki;
In August 2018, in Tbilisi, the 3-star, 4-star and 5-star hotel prices decreased by 0.3% compared to July 2018;
In August 2018, the average cost of a room in each category was as follows: 3-star hotel room - 147 GEL per night; 4-star hotel room - 253 GEL; 5-star hotel room - 455 GEL; guesthouse room- 74 GEL.
In the third quarter of 2018, Georgian economists positively assessed Georgia’s Economic Climate Indicator (ECI). The Georgianeconomy is categorized under “Boom” with a positive assessment of its present situation and expectation for the next sixmonths.
In July 2018, the hotel price index increased by 2.7% compared to June 2018;
In July 2018, the daily rates for standard double hotel rooms increased the most in Adjara(10.1%) and Samtskhe-Javakheti (5.9%), while the hotel prices decreased only in Tbilisi (-1.2%);
In July, the average cost of a room in each category was as follows: 3-star hotel room - 148 GEL per night; 4-star hotel room - 254 GEL; 5-star hotel room - 455 GEL; guesthouse room- 72 GEL;
In Tbilisi, the 3-star, 4-star and 5-star hotel prices decreased by 2.1% in July 2018, compared to June 2018;
On Tripadvisor, 1618 accommodation units are registered in Tbilisi, significantly exceeding the number of accommodation units registered in Baku - 456, Yerevan - 436 and Ankara – 364.
The first half of 2018 produced some interesting figures regarding Georgia’s external trade. Even though the existing data is only preliminary, the analysis thereof unveils some curious results. Georgia’s exports and imports reached their highest point for the observed period of 2015-2018. In the first half of 2018, Georgia was recorded to have conduced external trade with 133 countries, a record-breaking amount in the observed period. With free trade agreements already in place with China and the EU, we have been able to conduct a rough analysis of the effects of the two agreements so far. To analyze these effects, the observed period is taken from January 2015 to June 2018.
In June 2018, the hotel price index increased by 8.6% compared to May 2018;
The 3-star, 4-star and 5-star hotel price index increased by 10.6% in June 2018 compared to May 2018;
Among 3*, 4* and 5* hotels the highest price increases were recorded in Adjara – 36% and Guria – 32.8%, in Tbilisi prices increased only by 0.4%;
In June the average cost of a room in a 3-star hotel was GEL 143 per night, 4-star hotel - 247 GEL, 5-star hotel - 403 GEL, guesthouses - 73 GEL.
For the period of 2014 to 2017, in every first quarter of each year compared to the first quarter of the previous year, the nominal exchange rate of the Georgian Lari (GEL) against the US Dollar (USD) depreciated. This trend stopped this year though as in the first quarter of 2018, compared to the first quarter of 2017, the GEL appreciated by 4.5% and the value of 1 USD was equal to 2.49 GEL (average exchange rate in the first quarter of 2018).
Giorgi Khishtovani, Director at PMC research, and Mariam Saghareishvili, Researcher at PMC Research, discussing about financing model of Georgian higher education system and its unintended implications.