Georgia’s business sector is expanding, says Economy Ministry
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Georgia’s business sector is growing in a range of directions, generating increased turnover and employing more people with higher salaries.
Georgia’s Economy Ministry released information today that revealed 2015 was proving to be a "very successful year” for the business sector in Georgia, with particular gains experienced in the second quarter (Q2) of the year.
Turnover in Georgia’s business sector
Georgia’s business sector experienced 16 percent growth in Q2 of 2015 and exceeded 12.8 billion GEL.
The Economy Ministry figures revealed turnover in the country’s business sector increased in almost every field.
Revenue from the mining industry increased 91.8 percent (63.8 million GEL) while income from the agriculture sector increased 36 percent (20.7 million GEL). The hotel and restaurant sector jumped 31.3 percent (54.9 million GEL), the real estate sector increased 28.7 percent (140.1 million GEL) and the construction sector improved by 26.9 percent (201.8 million GEL). Georgia’s education sector increased 23.2 percent, the electricity, gas and water production and distribution jumped 21.7 percent, transport and communication rose 16 percent (198.6 million GEL), trade increased 10.2 percent (592.6 million GEL) and the manufacturing sector enjoyed a 2.5 percent (39.1 million GEL) increase.
Production
The cost of enterprise production exceeded 22.5 percent or 1.3 billion GEL in Q2 of 2015, compared to the same period of 2014, said the Economy Ministry.
The business sector’s production capacity increased in almost every field of economic activities:
- Mining industry – 68.7 percent;
- Agriculture – 50.4 percent;
- Hotels and restaurants – 30.6 percent;
- Real estate – 29.9 percent;
- Trade – 23.6 percent;
- Education – 22.6 percent;
- Construction – 19.6 percent;
- Electricity, gas and water production and distribution – 21.7 percent;
- Transport and communication – 10.6 percent; and
- Manufacturing – 3.8 percent.
Employment rate
The number of people employed in Georgia also increased in Q2 2015, said the Economy Ministry.
Twelve percent more people were employed in the business sector in Q2 2015 compared to Q2 2014, which equated to an additional 60,000 people in employment.
A total of 568,500 people were employed in Q2 this year.
The majority of employed persons worked in the trade sector (24.4 percent) followed by industry (19 percent), construction (10.5 percent) and transport and communication (10.4 percent).
Salaries
The average monthly salary of a person employed in the business sector reached 942.2 GEL – this was 10.6 percent more than in Q1 2015 and 10.1 percent more than Q2 2014.
In the first quarter of 2015 the total turnover of enterprises in Georgia reached 11 billion GEL, while the production value amounted to 5.6 billion GEL, says Georgia’s National Statistics Office (Geostat).
The Georgian business sector is on an upward trend thanks to more people getting involved in the workforce, combined with an increase in fishing, mining, agriculture and construction activities, latest statistics reveal.
Georgia is fast becoming known as a globally attractive business environment thanks to various business and investment forums where Georgia is positioning itself as a stabile country with a liberal trade regime, low taxes and business efficiency.
Georgia’s estimated real Gross Domestic Product (GDP) growth rate enjoyed a 2.3 percent increase year-on-year (y/y) in August 2015, says the country’s National Statistics Office, Geostat.
The European Union (EU) has launched a €1.1 million (4 million GEL) project in Georgia to get more people into the workforce.
Georgia’s Gross Domestic Product (GDP) has increased 8.5 percent year-on-year (y/y) totalling more than 29 million GEL, says the country’s National Statistics Office, Geostat.
Latest quarterly figures from the National Statistics Office of Georgia, Geostat, showed that men earned about 400 GEL more than women each month.
The optimism and confidence of Georgian business leaders is growing following the new approach of Georgia’s recently-appointed Prime Minister, who is actively reforming the business climate and improving the investment environment in Georgia.