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BUSINESS WEEK September 14, 2015 #113
September 14, 2015, Issue 113 FOREIGN INVESTMENTS IN GEORGIAN POWER SECTOR SHRINK TO 9 MILLION USD
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he last three years have recorded a plunge in foreign direct investments (FDI) into the Georgian power sector. FDI inflows to the energy sector marked 9 million USD in the second quarter of 2015, the lowest figure for the last 10 quarters. Pg. 11
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#GeorgiaChina: The Economic Forum DALIAN 2015 STRENGTHENS GEORGIAN-CHINESE COOPERATION
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David Kotaria: Belarus Visitors Get Unforgettable Impressions in Georgia
WINE EXPORT DECREASED BY 46%
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ccording to Wine National Agency, 19 860 452 bottles (0,75 l) of wine were exported from Georgia though 8 months, which is less by 46% comparing to the same period of the previous year. Pg. 11
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FAMILY MEDICINE NATIONAL TRAINING CENTER - GOOD EXAMPLE OF HOW PRIMARY HEALTHCARE ASSET SHOULD FUNCTION
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eputy Healthcare Minister Valeri Kvaratskhelia and President of the Global Alliance international consulting company Jean-Elie Malkin visited the Family Medicine National Training Center in Tbilisi. Pg. 8
Real Inflation Indicator Surpasses Target Point The annual inflation rate has surpassed the target point. In August the annual inflation indicator made up 5.4% and exceeded the planned target by 0.4%. A major rise in prices was recorded in the sector of alcoholic beverages and tobacco. The inflation rate marked 13.1% in this sector. A 9.3% upturn was registered in the category of furniture, household appliances and housekeeping services. A 9.1% rise was marked in the healthcare field. Food products and nonalcoholic beverages have risen in price by 6.3%. Prices have shrunk in a certain category of products as compared to August 2014. A 0.9% downturn was registered in the segment of clothes and shoes. Transportation expenses have decreased 1.6%. Prices of all other products have slightly increased. A rise in prices of food products and alcoholic beverages has essentially influenced Pg. 5 the general inflation indicator.
Mikheil Ukleba: Many Ukrainian Companies Come to Us
“Georgia Is First Country In Region To Begin Free Trade Negotiations With China” Georgia will be the first country in the region to launch negotiations with China about free trade, said Georgia’s Prime Minister Irakli Garibashvili after meeting his Chinese counterpart Li Keqiang on September 10. The Georgian official was on a working visit to China attending the World Economic Forum in Dalian last week. Many future economic opportunities between Georgia and China were discussed extensively at the forum. The major topics discussed between Garibashvili and Keqiang were the New Silk Road Project initiated by the Chinese government, Georgia’s role in the route that envisaged connecting of Europe and Asia and future investments of the Asian Infrastructure Investment Bank (AIIB) to Georgia. Garibashvili stressed Georgia had already been
the part of the Silk Road in the past and if the route was reinstated Georgia could again play “a crucial role” in connecting Asia with Europe on a more direct route. “We are definitely ready to become the part of the New Silk Road route. Our aim is to use Georgia’s strategic location as best we can,” said Garibashvili. “We want Georgia to be a place of peace, reconciliation and cooperation and not confrontation. This has been a historical mission of Georgia,” he added. The Georgian official noted the New Silk Road Project would be discussed in detail by officials in Tbilisi as well as at the Tbilisi Silk Road Forum, scheduled for September 15-16, where 200 Chinese guests were invited. Pg. 6-7
Irma Qamadadze: We Provide Environment that is Tailored and Acceptable to All of Clients
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Gazprom Plans to Export Electricity to Georgia Gazprom, reduced the price of gas supplied to Armenia by 13%, received guarantees of exports of electricity generated by Razdan thermal power station to Iran and Georgia. In addition, the power plant received sales guarantees for generated power in the country, although transmission lines have not yet completed. Alexander Novak, Minister of Energy of the Russian Federation, and Yervand Zakharyan, Minister of Energy of Armenia, signed a protocol of changes in the intergovernmental agreement on prices for Russian gas reached in 2013. According to the protocol, the base price of gas is reduced from $ 189 to $ 165 per 1 thousand cubic meters. However, the dollar price seems high to Yerevan: yesterday, Armenian President Serzh Sargsyan at the meeting with Vladimir Putin said that “during the crisis currency fluctuations very Pg. 11 painfully affect the rates.”
The Poor Class to Increase by 10-12% in Georgia
Batumi 2015 Investment Forum to Gather Over 250 Business Decision Makers
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The GEL devaluation and a rise in prices on products, electricity and other services are shaking the solvency of Georgia citizens. If prices keep rising and the inflation rate hits 10%, the quantity of impoverished people in Georgia will extremely increase instantly. In this case 10-12% of the middle class will be impoverished, economic
experts assert. Finally, by 2016 the middle class will constitute one sixth of Georgian citizens instead of the existing one fourth portion. The social condition of Georgian citizens is worsening. Amid the GEL depreciation and a rise in electricity tariffs, essential things and products have already increased in prices by 5.4%. Pg. 9
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