Georgia’s economy is made of two components: the so-called formal sector and the “unobserved” part. In the observed part of Georgian economy, 96 percent of all registered firms are small or medium sized enterprises (SMEs). However, there are many registered firms
Posts by Irina Guruli:Opinion Irina Guruli | Jun 10
TBILISI, DFWatch--The problem of bad loans gets huge attention nowadays. It has become a headache for all from bank managers to government authorities. Bad loans were basically the driver of the recent world economic downturn. The situation is no different in Georgia.
Foreign Direct Investment (FDI) inflows to Georgia fell significantly from the second quarter of 2012, closing the year 23% down from 2011. After several years of steady recovery, this is a serious concern for policy makers. Georgia’s domestic capital market is
Twin deficit is a situation where a country’s economy is running two deficits at the same time: a fiscal deficit, and a deficit on the current account of the balance of payments. According to the twin deficit hypothesis, persistent fiscal shocks cause a deterioration
In 2011 inflation can be regarded as one of the major challenges for the Georgian economy, writes Irina Guruli, program coordinator at the Economic Policy Research Center. Even though Georgia has been successful in suppressing the inflationary pressure
Social expenses comprised the largest share in the State budget of Georgia in 2011, with 30% of total expenses directed towards this category. Dynamics indicate clearly that the budget is getting more and more burdened by the social obligations, writes Irina Guruli,
Remittances constitute 6% of the country’s gross domestic product (GDP) and outweigh the inflows of both grants and FDIs in Georgia, writes Irina Guruli, program coordinator at the Economic Policy Research Center. International remittances are personal flows of money by migrants to family and friends in their countries of origin. With more than 215 million people living outside their countries of birth, remittances sent home by migrants accounted for 2 % of GDP for all developing countries in 2008, but 6% of GDP for low-income countries. This is where Georgia stands: remittances constitute 6% of the country’s GDP, as of September 2011, the amount of remittances transferred to Georgia amounted to 812.6 million USD, which is a 19.6% increase compared to the same period last year. Roughly, 9% of the population is remittance recipient. For financial institutions, 20% of their net income is from money transfer payments, although they are competing with a very large informal sector (an estimate of one third), i.e. remittances sent through friends, relatives, etc. To better understand the role of remittances for Georgian economy we shall look at ...
In order to assess the economic condition of a country, economists look at a various number of statistics. Besides the level of real Gross Domestic Product (GDP) that measures the country’s economic output, one statistic that attracts attention from the economists as well as the general public is the unemployment rate in the country. Unemployment imposes a number of costs for a nation, such as economic, physiological and social. Unemployment in Georgia Since 1998 level of unemployment has been rising in Georgia, from 12.4% all the way up to 16.3% as of 2010. According to the research methodology of the National Statistics of Georgia, this 16.3% represents: “persons at the age of 15 or above, who was not employed (even for one hour) 7 days prior to the interview process, was looking for a job for the last 4 weeks time and was ready to start working within the next 2 weeks time” . If we consider these prerequisites, the unemployment rate is even more alarming. Furthermore, according to the survey conducted by National Democratic Institute (NDI), out of 16,161 questioned, 67% ...