Economic and Business situation in Georgia

The recent economic situation in Georgia

Georgia is a middle-income country with a per capita GDP of 4046.8 $ (According to Geostat, 2017). Despite ongoing reforms and rapid economic growth, Georgia still faces financial challenges, including the need to tackle poverty and unemployment. It is noteworthy to say that the first years of an independent market-based economic system for Georgia were incredibly difficult. That is mainly because of the civil strife, hostilities in Abkhazia and South Ossetia, energy and transport blockades, extremely tense criminogenic environments, and the loss of old, traditional ties and suppliers. Additionally, high rates of labour migration are a small list of the negative factors that led to the unprecedented economic downturn, hyperinflation, and catastrophic rise in unemployment in the first years of independence.

Besides, the country is facing the need for radical and rapid economic reforms, the gradual implementation of which has significantly improved the situation but has not yielded the desired results, especially in terms of reducing unemployment and poverty. Despite the relatively high rate of economic growth in previous years, the situation of a large part of the population has not changed according to the latest business news. Accordingly, the goal of the Government of Georgia is creating a long-term foundation for inclusive economic growth and improving the well-being of the population.

Government of Georgia announces strategies for the country's economic growth

Georgia's socio-economic development strategies are described in the document "Georgia 2020". According to these strategies, the Government of Georgia is based on three main principles, which are the following:

To promote the country's economic development, the Government of Georgia plans to activate the regulatory mechanisms of the economy, and in case of crisis will help stimulate market demand. The main principle of the country's economic development strategy is to ensure the freedom of the private sector in the conditions of optimal, efficient and transparent operation of the government. That implies the establishment of such an economic order, when the private sector itself makes decisions, the supremacy of property rights is protected, and the private sector is the main driving force of economic development. Free market relations will also be combined with optimal models of state regulations.

A stable macroeconomic policy is a necessary precondition for rapid economic growth. Between the pursuit of economic goals and the implementation of the declared policy of macroeconomic stability, preference will be given to the latter. Hence, Georgia's economic growth model is then basic, and includes the following concepts that are based on:

By developing a macroeconomic policy framework, the Government of Georgia undertakes to pursue a stable macroeconomic policy to overcome external risks, to undertake structural reforms to maintain macroeconomic stability and the reputation of a government with fiscal responsibility.


What are the five reasons to invest in agriculture of Georgia

Generally speaking, agriculture has both significant economic and social functions in Georgia and abroad. The agricultural sector of Georgia employs more than half of the country's workforce and hence, for most of the families, the income from agriculture of Georgia is the only source of their livelihood. According to the latest business news, the interest in the private agricultural sector, as well as in the volume of investment is not high. However, there are various examples of successful perspectives on how to owe local and foreign investment in agriculture. Below, you can see some of the main reasons for a healthy and prosperous environmental investment in the agriculture of Georgia. Georgia’s location and natural conditions It is widely known that Georgian agriculture has favourable and convenient natural resources and conditions for agricultural production. In Georgia, there are around 22 different climates, either cold and dry, as well as humid and warm. Almost half of Georgia's total area (territory) may be used as agricultural land for enhancing the country's economy from that sector. Moreover, there are naturally convenient conditions and geographical locations for vegetable, grain, fruit and sub-tropical crops and their production. Almost the entire area of the country can be directly thought of as fertile land where a variety of crops can be harvested without any obstruction. At the same time, it is noteworthy to say that the country is highly rich in irrigation systems and water resources that exist in almost every region. But even today, there are some regions in Georgia, that still do not have enough water resources to produce products. Deep and Comprehensive Free Trade Agreement (DCFTA) with the EU It

A new touch-free aeroplane bathroom is coming on

Recently, in business news platforms it was announced that air travelling undergoes a new touch-free transformation — the aeroplane bathroom — that has received little attention of late. Some companies started to produce so-called "touchless tech" and aim to transform old-fashioned bathrooms into fully hands-free zones. Aeroplane bathroom features that will be touchless In contrast to automated, old-fashioned bathrooms in many airports, aeroplane bathrooms generally have at least seven touchpoints for each visit. From the bathroom door to the sink to the toilet itself, of course, bodily contact is unavoidable, so people need to operate most hardware by touching them. While some of the major carriers have stepped up bathroom cleaning routines, one of the airlines, like — Delta Air Lines recently started to sanitize lavatories and all other wet points with the help of electrostatic sprayers after per flight. For instance, aviation companies have created sensor-based, infrared technology to decrease germ transmission among air travellers and passengers. Aircraft engineering company, namely Haeco Americas, has developed a foot-powered toilet flush before the COVID-19 pandemic. Since then, the company has added a combination hand sanitizer, liquid soap dispenser and an automated wastebasket lid to its product lineup. The company, which is based in Greensboro, North Carolina, recently stared to develop a new touch-free technique to open the bathroom door too. The new “Lavatory Touchless Suite” is now being developed a subsidiary of Raytheon Technologies Corp., by Collins Aerospace, that produces commercial aviation products and has developed an automatic toilet seat that lowers and raises. The variety of products includes a touchless toilet flush and faucet in addition to a hands-free waste flap and soap dispenser. “Toilet