Georgia in IMF top 10 with highest unemployment decrease over 12 years

Many chose to relocate to the Caucasus and Central Asia, taking advantage of linguistic and cultural proximity and the relative ease of gaining residence and opening bank accounts. The smaller CCA countries, in particular, saw larger increases in the share of Russian migrants relative to their overall populations, with new arrivals in 2022 accounting, for instance, for 3 per cent of Georgia’s population and 2.5 per cent of Armenia’s Growth in the Caucasus is forecast to be moderate at 4.1 per cent in 2024 before settling closer to 3.5 per cent in 2025, a level in line with estimates of medium-term potential growth.For instance, Georgia is estimated to have received more than 20,000 Russian tech professionals and more than 21,000 legal entities (firms) were established by Russian entrepreneurs between March 2022 and July 2023. . Given the relative ease of opening bank accounts in the region, around 500,000 bank accounts have been opened by Russian visitors and migrants to Kazakhstan since the start of the war, while 100,000 have been opened in Georgia.The main risks arise from geopolitical instability in the region and domestic political polarisation. Potential progress concerning the country’s EU candidate status, in contrast, could create a more stable environment and stimulate growth-supporting reforms.

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If we consider from the point of view of the countries, the first place in the volume of remittances is still maintained by the Russian Federation - $49,129,400, however, the incoming remittances from this country have been steadily decreasing in recent months. For example, if $67.6 million was transferred from Russia in January, this figure was $54.6 million in February, and $52.9 million in March.The second largest volume of remittances is the USA, from which $46.3 million entered Georgia in April. This volume is almost $2 million higher than the similar indicator of March.Italy is in third place, from which $45.8 million was received in April, Greece is in fourth place with $21.9 million, and Germany is in fifth place with $20.7 million.In the analyzed period, remittances from Georgia totaled $30.4 million. Accordingly, the positive balance in remittances amounts to $248 million.

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RIA is in second place, with a 23.7% share of total remittances with $66,058,300.Money Gram is in third place with 18.7% and $52,179,400.The fourth place is occupied by Western Union with 16.8% and $46,684,300.Intel Express is fifth – with 11.6% and $32,243,400.Sixth among the largest systems is Rico Gram, up 2.9% at $8,102,300.Other systems account for only 0.1% or $259,700 of total remittances.

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On Wednesday trading, by 13:30 Tbilisi time, the price of "Bank of Georgia" (BGEO) shares decreased by 12.18% and currently per share price amounts to 41.45 GBP. The company's market capitalization is currently 2.138 billion GBP.The value of shares of TBC PLC decreased by 9.32%. One share of the bank is worth 26.75 GBP. The company's market capitalization currently stands at 1.634 billion GBP.The value of the shares of "Georgian Capital" (CGEO) decreased by 6.48%, as a result, the price of one share became 10.10 GBP. As a result, the company's market capitalization is currently 460.8 million GBP.

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Transactions with Top|Card are limited from May 13, however, the owner must not exceed the minimum deposit date to avoid being fined.From May 20, the credit report will be transferred to Liberty Bank, which bought the retail portfolio of Pasha Bank 2 months ago and completed the migration within the announced period.The Top|Card will be issued in a different design with the same name at Liberty Bank, terms and conditions will not change. Those who do not want to get a new card, will fill the card account opened in Liberty with the existing schedule.The Liberty team is pleased to welcome 45,000 Top Card customers. The management has stated that the expansion was a strategic step in the path of universalization, which makes the unique credit card available to 1,700,000 Liberty customers.Pasha Bank (Azerbaijan Capital) Re|Bank currently only has current accounts, demand and term-deposits of individuals in the retail direction. Loans are granted only to legal entities.Pasha Bank announced in February about the change in strategy, that it would focus on corporate business in 2024-2026.The bank, with Azerbaijani capital, operated with 4 service centers before the reorganization, including three branches of Re/Bank (in Tbilisi, Batumi and Kutaisi) is currently represented only by the central branch of the capital (Saarbrücken Square).

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As of the document, in 2023 labour force participation rate (share of the labour force in the total population aged 15 and older) increased by 1.4 percentage points compared to the previous year and became 53.3 percent, while the employment rate increased by 1.6 percentage points and amounted to 44.5 percent.The Labour force participation rate in urban settlements increased by 1.1 percentage points, while in rural settlements - by 1.6 percentage points compared to the previous year. The employment rate in urban settlements as well as in rural areas increased by 1.3 and 1.9 percentage points and equaled 45.4 and 43.4 percent, respectively.In 2023, the share of hired employees was 69% among employed persons, which is 1.1 percentage points higher than the previous year.In 2023, the unemployment rate in urban settlements decreased by 0.8 percentage points compared to the previous year and in rural settlements - by 1.1 percentage points.In 2023, compared to the previous year, the most significant decline in the unemployment rate was observed in Racha-Lechkhumi and Kvemo-Svaneti, Adjara and Tbilisi regions by 7.7, 6.2 and 2.0 percentage points, respectively.Traditionally, the unemployment rate is higher for men than for women. In 2023, compared to the previous year this indicator decreased for women by 0.7 percentage points and by 1.0 percentage points for men.The labour force participation rate is higher for men than for women. In 2023 the indicator for women was 43.1 percent and for men – 65.1 percent. The labour force participation rate for women increased by 1.6, while that increased by 1.1 percentage points for men, compared to the previous year.In 2023 the employment rate for women, as well as for men increased by 1.6 percentage points, respectively, compared to the previous year.In 2023, the highest rate of unemployment was in the age group of 15-19 years (44.6 percent), while this indicator is traditionally the lowest in the 65+ age group (4.3 percent) due to the low activity of the population in this age group.

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January-February was the opposite, a decrease of 430 million was noted.In the last reporting month, refinancing loans decreased by 55 million GEL (in March +190 million; February +130 million), one-day loans were no longer issued, and as of May 1st, the balance has decreased by 215 million to 35 million GEL.There are no transactions in the secondary securities market either. Activities in the secondary market have been suspended since November.Overall, the net debt of banks decreased to 2.4 billion in April, after a 400 million increase in March. At the end of February, the balance of the portfolio was 2.25 billion GEL.During the reporting period, the NBG did not apply for currency interventions (the activity of the supervisor has not been noted since November). February's net purchases on Bmatch were $77.5 million, March's - $128 million. April's net purchases are within $70 million.In February, buying and selling in the foreign exchange market almost entirely accounted for the spot transactions (98.3%) and exceeded $2.6 billion (+4.3%Y.Y).Share of the NBG in total foreign exchange trade by months (2024-2023)

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The embassy clarified that the closure of the visa application centre, situated near the parliament, was necessitated today due to ongoing protests and the police cordon in the vicinity.“The UK’s Visa Application Centre in Tbilisi, which is situated close to Parliament has been closed today due to the rally and police cordons this morning. Everyone with an appointment has been contacted. The Centre will reopen when visitor access is back to normal,” the British Embassy stated.

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