Issue 120: Impact of COVID-19 on Remittance Inflows in Georgia
30-Jul-2020
Due to the COVID-19 pandemic, global remittance flows are expected to fall by 20% in 2020 (World Bank), while the decrease in Georgia is forecast at 15% (IMF);
In the first half of 2020, remittances have declined by just 4.8% compared to the same period of 2019;
Remittance inflows have been growing by an average of 8.5% over the past decade;
The contribution of remittance inflows in GDP has increased significantly over time and amounted 11% on average for the period of 2015-2019;
In 2020, remittance inflows saw a sharp drop (-42.3%) in April, however, the recovery in June was also strong (17.8%), compared to the same period of 2019;
Remittances from Russia declined the most in the first half of 2020 compared to the first half of 2019 (-27%), while Italy recorded the strongest growth (14%).
Georgian Economic Climate (Q3, 2020)
27-Jul-2020
In the third quarter of 2020, Georgian economic climate has slightly improved. In this period, Georgian economists assessed Georgia’s present economic situation negatively; Moreover, the assessment of present economic situation in this quarter has improved compared to the second quarter of 2020, but worsened compared to the third quarter of 2019. In the third quarter of 2020, Georgia’s economic situation for the next six months has also been assessed negatively by Georgian economists. Furthermore, expectations for the next six months have enhanced compared with second quarter of 2020, but deteriorated slightly compared with the third quarter of 2019.
Hotel Price Index (June, 2020)
09-Jul-2020
In Georgia, the average cost of a room1 in a 3-star hotel was 135 GEL per night in June 2020. While the average cost of a room in a 4-star hotel in Georgia was 223 GEL per night and the average cost of a room in a guesthouse2 was 73 GEL per night. The average cost of a room in a 5-star hotel in Georgia in June 2020 was 322 GEL per night. In Tbilisi, the average price was 471 GEL, followed by Kakheti - 327 GEL, Samtskhe-Javakheti - 279 GEL and Adjara – 273 GEL.
Monthly Tourism Update (June, 2020)
09-Jul-2020
Using various assumptions, in Q3 of 2020, the maximum capacity of domestic tourism expenditures is to replace 33% of revenues from international tourism;
Using various assumptions, total revenues generated from tourism (both, domestic and international) in 2020 could amount to $1730 mln, which is 44.1% of the corresponding figure in 2019;
Domestic tourism in Georgia reopened on June 15th, while the reopening of borders is postponed to the near future;
The number of international travelers declined by 94.6% in May compared to the same period of 2019, while the number of inter- national visitors fell by 94.1% and the number of international tourists fell by 93.8%;
In June 2020, hotel prices do not provide an accurate guidance of the situation in accommodation market due to the fact that the market for accommodations is just starting to recover from the COVID-19-induced crisis.
Issue 119: Foreign Direct Investments in Georgia
24-Jun-2020
Due to the COVID-19 pandemic, global FDI is expected to fall by 30-40% in 2020 (UNCTAD), while the decrease in Georgia is forecast at 19% (IMF);
Net FDI inflows have been decreasing in Georgia since 2017, based on both, yearly and Q1 data;
Net FDI inflows in Georgia experience volatility over time, due to large one-off investment projects;
Georgia has been leading among EaP countries in terms of the share of FDI in GDP in 2017 and 2018;
Net FDI inflows decreased by 41.7% in Q1 of 2020, compared to Q1 in 2019, mainly due to COVID-19 pandemic.
