The unique cross-country study compares interest rates for a set of retail credit products in Georgia and select transition economies. Preliminary findings suggest that the cost of credit in Georgia is lower than in the CIS countries which have been covered by the survey (namely, Kazakhstan, Russia, Ukraine and in many cases Armenia) while it’s somewhat higher compared to a cohort of Central and Eastern European Countries (CEE) - this is true especially for local currency loans. However, when adjusted for cost of funds, interest rates on retail products in Georgia come out to be among the lowest, even compared to the CEE countries.

This project identifies sectors and subsectors of the Georgian economy which have a higher potential for growth and which the Georgian Government should prioritise when designing strategies to attract foreign investors and increase EU export levels post DCFTA. This project intends to help the Georgian Government foster higher rates of investment and job creation and to support the inclusive growth of the economy.

The objective of this study was to identify all sectors in which Georgian companies were or had the potential to be internationally successful. Study was prepared by using available statistical data, supplementary published sources and field interviews. We have analyzed all sectors in the Georgian economy including services, creative industries and start-ups due to their increasing prevalence and importance in the global economy. As data on services, creative industries and start-ups were not available we analyzed these sectors based on data collected during field interviews and fragmentary published sources that enabled us to create a more comprehensive profile of these sectors.

After the collapse of the Soviet Union in 1991, the newly independent state underwent serious turmoil, including civil war, deteriorated governance, depreciation of critical infrastructure, and endemic corruption. But after the Rose Revolution in 2003, the country began to implement major political and economic reforms. Foreign capital was injected into the county which helped deliver extremely high GDP growth rates (on average of 6% per year from 2003 to 2013).

Economic growth, however, was not socially inclusive. It mainly centered on Tbilisi (the capital city) while the rest of the country was left behind. High levels of poverty and unemployment persisted, and this led to a build-up of social tensions that ultimately resulted in a dramatic political regime shift in 2012.

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