We recently started working on a new project entitled “Communal Infrastructure for Environment and Tourism Improvement - Lot 2: Accompanying Measures,” aimed at improving the living conditions of people in four Georgian municipalities (Baghdati, Vani, Samtredia, and Kazbegi) through improving the supply of hygienically-sound drinking water and environmentally-safe sanitation infrastructure.

On September 19-23, the International Consortium on Governmental Financial Management (ICGFM) is hosting the 2022 International Conference at the University Club of Washington DC, offering the first opportunity in over two years for the global PFM community to gather in-person to network and connect with leading professionals and colleagues from across the world, in a unique and distinguished setting.

On July 28, PMCG supported a workshop organized by the EU and the Ministry of Environmental Protection and Agriculture of Georgia as part of the project “Support to Environmental Protection and Fight Against Climate Change in Georgia.”

PMCG, as part of an international consortium led by B&S Europe, will begin the implementation of another new EU-funded project entitled “EU for Human Rights: Mainstreaming Non-discrimination Concepts in Legislation” in North Macedonia. The project has an expected duration of one year.  

The beverage manufacturing sector, encompassing the production of fruit juices, mineral water, soft drinks, beer, and spirits, has high export potential and a strong presence of small and medium-sized enterprises (SMEs). From 2017 to 2023, Georgia’s total beverage exports grew at a CAGR of 10%, reaching USD 463 million in 2023. Despite overall export growth, the share of exports to the EU declined significantly during this time, particularly for SMEs. Key challenges include limited access to quality raw materials, outdated machinery, a shortage of skilled labor, and logistical constraints, as well as difficulties in meeting EU standards and DCFTA regulations and limited access to financing for export operations.

Georgia’s IT services sector has experienced rapid expansion, with tax revenues quadrupling between 2020 and 2023, employment increasing 5.4-fold, and turnover rising 13-fold. Government policies and incentives, such as the International Company Status and FDI Grant Program, have played a key role in attracting foreign investment and driving the sector’s development. Future growth will rely on strategic initiatives such as the successful implementation of GITA 2.0, enhanced IT procurement policies, and stronger collaboration with the private sector, while addressing key challenges like export capabilities and talent retention.

Shortly after Russia’s full-scale invasion of Ukraine in February 2022, maritime trade flows in the Black Sea were significantly reshaped. As the war continued, developments affecting the trade in the Black Sea changed, underscoring the importance of thoroughly analyzing how the region has adapted to such disruptions. This publication builds upon the previous edition, which was released shortly after the outbreak of the war. Now, three years later, our focus shifts to examining how trade dynamics, particularly maritime trade in the Black Sea region, have evolved during this period. Key insights include: Upon the outbreak of the Russo-Ukrainian War, port calls in Ukraine and Russia dropped sharply, while other Black Sea countries briefly benefited from redirected trade flows. By late 2023, port calls in Ukraine had gradually recovered, supported by new shipping routes through Romania and Bulgaria. However, serious threats to commercial shipping remained. Ukraine’s maritime exports and imports fell sharply in 2022, with a slow recovery in imports in 2023. In Russia, maritime imports declined, while exports initially increased in 2022, possibly due to sanctions being ineffective. However, as the sanctions intensified, exports also fell significantly the following year.

Our latest monthly publication, Employment Tracker, offers insights into recent developments in Georgia’s labor market. In February 2025, the annual growth in the number of salaried employees recorded its lowest rate since 2023. In February 2025, the total number of vacancies posted on jobs.ge decreased by 20% YoY. Between December 2024 and February 2025, the Sales and Procurement category saw the highest number of job postings.

In 2024, a total of 6.5 million international visits to Georgia were recorded, a 4.6% increase YoY, driven by a 9.0% rise in overnight trips, while same-day trips declined by 9.2%.  In 2024, visits from the EU and the UK totaled 438,414, a 3.8% increase YoY. However, the number of visits from the EU and the UK declined every quarter from Q1 of 2024 onwards.  In 2024, there were 2.2 million outbound visits made by Georgian residents, a marginal 0.1% increase YoY. Notably, outbound visits declined YoY in both Q3 and Q4 of 2024. 

From the beginning of the war in February 2022 up until 31 December 2024, the international community has committed a total of €399.8 billion to Ukraine, with the majority (52%) designated for financial assistance, 42% for military assistance, and 6% for humanitarian assistance. Of the committed assistance, 67% (€267.2 billion) has already been allocated. The US leads the way in terms of total commitments, with 96% of its pledged assistance already allocated.

In Q1 2025, surveyed Georgian economists negatively assess Georgia’s present economic situation, and their expectations for the next six months are also negative.  They believe that the political crisis had the most significant impact on the Georgian economy in Q1 2025. The reduction in foreign assistance, including that from the United States Agency for International Development (USAID), was assessed negatively by 97% of the surveyed economists in terms of its effects on Georgia’s economic and political climate. 

Our latest monthly publication, Employment Tracker, offers insights into recent developments in Georgia’s labor market. In January 2025, the number of persons receiving a monthly salary increased by 4% YoY. In January 2025, the total number of vacancies published on jobs.ge decreased by 9% YoY. In Q4 of 2024, labor market efficiency slightly increased as the seasonally adjusted unemployment rate declined slightly, while the job openings rate dropped significantly.

The latest issue of Economic Outlook and Indicators in Georgia, analyzes Vocational Education in Georgia (2019 – 2023): State expenditure on VET tripled between 2017 and 2024, with its share in total education spending rising from 3.1% to 4%. From 2017 to 2023, the number of registered students increased; however,  the number of admitted students has not risen correspondingly, leading to a widening gap between registered and admitted students. The transition from secondary school to VET remains challenging, with 10.6 times more students opting for higher education, albeit the number of registered VET students has grown.