The main findings of the survey of Georgian economists conducted in the fourth quarter of 2023 are: Georgian economists have a positive assessment of Georgia’s present economic situation. Though their predictions for Georgia’s economic situation for the next six months are also positive. 64% of the surveyed economists identified a labor shortage as the most significant threat to the Georgian economy. All of the surveyed economists either agreed or completely agreed with the IMF’s concerns regarding the independence of the NBG. Overall, 76% of the surveyed economists believed that the recent developments surrounding the NBG posed a high or very high threat to the continuation of the IMF’s support program in Georgia.

Since Russia’s invasion of Ukraine on 24 February 2022, Ukraine has adopted various measures and policies to support business and economic activities in the country. Alongside fiscal policies as well as business and labor support programs, monetary regulations have played a crucial role in ensuring the resilience of its wartime economy. The National Bank of Ukraine (NBU) has been efficiently responding to monetary developments, implementing effective actions to maintain the country’s monetary stability. This bulletin provides an overview of some of the most recent monetary and exchange rate policies adopted in Ukraine and analyzes their effectiveness by looking at three key monetary stability indicators: exchange rate, inflation, and reserves. UKRAINIAN PUBLICATION

Georgia is a significant contributor to the global hazelnut industry, ranking among the world’s leading countries in both shelled and in-shell hazelnut exports. Nearly all (97.9%) Georgian hazelnuts are produced in the following five regions: Samegrelo (42.2%); Guria (20.7%); Kakheti (12.9%); Adjara (12.0%); and Imereti (10.5%). Among these regions, the price of hazelnuts is highest in Kakheti, followed by Samegrelo and Imereti. Most of the hazelnuts produced in Georgia are exported. The leading importer countries of Georgian hazelnuts are Italy and Germany.

In October 2023, the number of persons receiving a monthly salary increased by 5.1% compared to the corresponding period of 2022. In October 2023, the share of persons receiving a monthly salary up to 600 GEL amounted to 17.9%, which was 4.6 percentage points less than the corresponding period of 2022. In October 2023, the share of persons receiving a monthly salary of 9,600 GEL and more amounted to 1.9%, which was 0.3 percentage points more than the corresponding period of 2022. In 2023, from May to October, the total number of vacancies published on jobs.ge amounted to 45,954, which was 5.1% higher compared to the corresponding period of 2022.  

Georgia is considered a country of emigration. Since the mid-1990s, emigration from the country has been largely defined as labor migration, with Georgian citizens seeking better prospects abroad to ease persistent socio-economic challenges at home, including high unemployment, widespread poverty, and low wages.  A distinctive feature of this trend is that a significant proportion of Georgian labor emigrants choose to reside and work illegally in their host countries. Meanwhile, for Georgians who opt to emigrate, their primary motivation for doing so is to earn enough to support their families back in Georgia to whom they send remittances to alleviate economic hardships. This bulletin discusses Georgia’s emigration trends and the role of remittances in the Georgian economy at macro and micro levels over the last decade.

In Q3 of 2023, the number of international visits reached 2.3 million visits, recording a 21% YoY increase, however, only reaching 83% of visits in Q3 of 2019. Among the top countries of origin for international visits, in the following periods, visits from Israel are expected to decline due to geopolitical issues. However, visits from China are set to increase gradually with the new visa-free policy. Additionally, India’s tourism market remains promising, despite some border crossing challenges for visitors. In Q3 of 2023, income from international travel reached USD 1.4 billion, which significantly surpasses the pre-pandemic number by 28%, however, showing an incremental 5% rise compared to Q3 of 2022. In October 2023, compared to October 2022, the Hotel Price Index (HPI) in Georgia decreased by 11.1%, with the yearly HPI at its lowest under the “guesthouses” category (-18.7%). Meanwhile, compared to September 2023, the HPI in October 2023 dropped by 11.3%.

In Georgia, the average cost of a room in a 3-star hotel was 152 GEL per night in October 2023, while the average cost of a room in a 4-star hotel in Georgia was 237 GEL per night and the average cost of a room in a guesthouse was 118 GEL per night. The average cost of a room in a 5-star hotel in Georgia in October 2023 was 411 GEL per night. In Tbilisi, the average price was 562 GEL, followed by Guria – 530 GEL, Kakheti – 517 GEL, and Adjara – 319 GEL.    

Following rapid double-digit growth in 2021 and 2022, Georgia's economy in this year is continuing on an upward trajectory, albeit at a slower pace compared to the previous two years. In the first 9 months of 2023, there were several factors that have contributed to growth slowing down. Moreover, there were several factors that presented challenges and opportunities in the economy - examined within the report in detail. Issue 5 of the Macro Overview thoroughly explores different aspects of the economy in Georgia and beyond, including: Economic Growth; Economic and Business Climate; Key Macroeconomic Indicators; Labor Market; External Sector; Global Economic Trends.      

In September 2023, the number of persons receiving a monthly salary increased by 3.9% compared to the corresponding period of 2022. In September 2023, the share of persons receiving a monthly salary up to 600 GEL amounted to 18.6%, which was 4.3 percentage points less than the corresponding period of 2022. In September 2023, the share of persons receiving a monthly salary of 9,600 GEL and more amounted to 1.9%, which was 0.3 percentage points more than the corresponding period of 2022. In 2023, from April to September, the total number of vacancies published on jobs.ge amounted to 44,802, which was 5.4% higher compared to the corresponding period of 2022.

In the first half of 2023, the number of domestic visits amounted to 9.2 million, which is 15% higher compared to the corresponding period of 2022. The upturn in domestic visits this year, following a year-on-year decline in the previous year, was especially pronounced in the Q2 of 2023, where the number of visits rose by 25% compared to the Q2 of 2022. The total expenditure of domestic visitors reached GEL 1.4 billion in the first half of 2023, which is 14% higher compared to the corresponding period of 2022. By categories, in the first half of 2023, compared to the first half of 2022, the expenditure of domestic visitors on shopping (by 17%) and food and drinks (25%) increased significantly. In September 2023, compared to September 2022, the Hotel Price Index (HPI) in Georgia decreased by 10.0%, with the yearly HPI at its lowest under the “guesthouses” category (-14.3%). Meanwhile, compared to August 2023, the HPI in September 2023 dropped by 6.2%.