Sectors

In July 2023:

Brent oil price increased by 14.2% m/m due to the string of production cut announcements by OPEC+ members. Additionally, surge in oil prices owes much to China's stimulus measures and the reopening of their economy, according to Goldman Sachs.

Natural gas price was down 24.9% m/m as the presence of abundant inventories balanced out potential supply risks.

Ammonium nitrate price was up 49.0% m/m. However, growth was driven by low base effect, as prices hit 5-year minimum in Jun-23. 

Electronics Sector Overview

In June 2023:

We are delighted to provide our new product – commodity monthly outlook - covering oil, natural gas, ammonium nitrate, wheat, copper, ferrosilicon and gold global price dynamics, along with Georgia’s external trade of these commodities.

In May 2023:

Brent oil price was down 0.9% m/m, after a rapid increase in oil prices in Apr-23 following OPEC announcement on production cuts.

Tourism recovery accelerated significantly in May-22, witnessed by all key indicators: number of visitors, tourism revenues, Airbnb and hotel demand. 

Arrivals

Arrivals

Airbnb supply in Tbilisi growing at an astonishing pace. Over 2016-2018, the average monthly Airbnb rentals in Tbilisi increased 2.5x from 4,200 properties in 2016 to 10,300 in 2018, generating a market worth US$ 23mn.

Such a dramatic growth of the market raises questions: 

Electricity is a capital-intensive sector with reasonable profits. Georgia’s investor-friendly regulations, upgraded transmission networks and export opportunities have attracted substantial investment in recent years. The energy sector was the second-largest FDI recipient in 2007-17. The sector’s EBITDA margin averaged 19% in 2012-17, above the business sector’s level of 13%