Political-economic situation
The Georgian economy developed favorably in the 3rd quarter despite the Eastern European fighting and internationally imposed sanctions against Russia - in particular thanks to increasing tourism revenues. Vacation destinations on the Black Sea were fully booked in July, August and September. Primarily, it was guests from the largest country in the world who chose to vacation in Georgia due to the retaliatory measures taken by the West and massive restrictions on Russian flight operations. Even BPN program participants from remote areas reported good hotel capacity utilization.
After Georgia was temporarily denied EU candidate status at the end of June, the EU Commission is making further accession negotiations conditional on fundamental reforms to be implemented within the next 6 months. First and foremost is the condition that the polarization of the political system be curbed. The 12-point action plan also includes urgent judicial reform, limiting the power of the wealthy and influential, and combating organized crime. It also calls for civil society to play a stronger role in dialogue with the government.
While 50,000 Russians, mostly young men, have already fled to Georgia in the first 4 months of the Ukraine war, the partial mobilization announced on September 21 has once again triggered a huge wave of refugees. In the last days of September, 10,000 new arrivals from Russia were recorded every day. In Georgia, Russians are allowed to stay without a visa for 1 year.
Activities BPN
Shortly before the summer vacations, the Business Academy organized a well-attended seminar with a local expert on the latest changes in Georgian tax legislation. The kick-off after the heat weeks was a two-part seminar on "Accounting / Advantages and disadvantages of different legal forms for SMEs". This was followed at the end of September by a time management seminar attended by over 30 "On- & Offline" participants. The seminar materials, which were revised during the summer vacation, were used for the first time, with up-to-date case studies and exercises as well as participant surveys with the web-based online tool "Mentimeter".
At the end of July, the 3 business owners of the company "Chirifruit", which has been supported since 2017, attended a confectionery course at the chocolatier Werner Rüegsegger in Lucerne, arranged by BPN.
Challenges
The BPN office on Giorgi Akhvlediani Street in Tbilisi, which we have been able to rent at extremely favorable conditions since 2016, is to be sold. The lease contract was terminated at the end of March 2023. The search for new business premises is in full swing.
