Deputy Minister: Business activities increased in 2019

Ekaterine Mikabadze, the Deputy Minister of Economy and Sustainable Development, says that the statistics of enterprises' activities shows that in 2019, business activity has increased in Georgia.

The minister made the statement on the statistics of the National Statistics Office of Georgia (Geostat) about the results of the activities of enterprises in Quarter I, 2019.

"The results of the enterprises' activity clearly show that in 2019 business activity has increased in Georgia due to economic stability in the country, attractive investment and business environment, as well as correct and consistent economic policy," she said.

Mikabadze noted the positive role of the private sector in economic growth, and therefore it is essential that positive trends were maintained in the first quarter of 2019 and significant increase of turnover and employment of business sector was observed.

"The Government of Georgia is actively working on improving the business and investment environment and increasing the competitiveness of the private sector, which will contribute to the development of the business sector and the growth of employment," said the Deputy Minister.

She emphasized the role of small and medium business in the economic growth process. According to Mikabadze, recent statistics show that the steps taken by the government in support of this sector positively affect the development of small and medium enterprises.

"We have a sophisticated strategy for small and medium business development since 2016, and the reforms are implemented following the preliminary action plan. As a result, we see how the competitiveness of this sector is growing, "said Deputy Minister of Economy and Sustainable Development.

Geostat reports that in the quarter I of 2019 compared to the same quarter of the previous year, the volume of business sector turnover increased by 27.5 percent and amounted to GEL 22.9 billion. The production value of the business sector is characterized by the growth tendency. In Q 1 of 2019, its volume equaled to 9.5 billion GEL, which is year-on-year 9.0 % higher.

Moreover, in Q1, 2019, 54.5% of total turnover comes on large and 17.4% - on medium businesses while 28.1 percent is distributed to small business. A slight difference is in case of total production value: 41.3 percent comes on large, 24.8 percent – on medium and 33.9% on small businesses.

In the first quarter of 2019, total purchases of goods and services carried out by enterprises equaled to 14.4 billion GEL (year-on-year 13.3 percent higher), while the purchase goods and services for resale amounted 8.8 billion GEL (year-on-year 6.7 percent higher).

Also, in the same period, the average number of employees equaled to 663.800, which is year-on-year 4.2% higher. Out of the total number of employees, 42.3 percent are female, and 57.7 percent are male. 36.9% of the total number of employees comes on large, 20.6% – on medium and 42.5 % - on small businesses.

The total number of employed persons amounted 619.400 and the total personnel costs of enterprises equaled to GEL 2 183.5 million.

In addition to this, in the first quarter of 2019, the average monthly remuneration of employed persons equal to 1 151.9 GEL while remuneration of employed women made up 934.2 GEL. Average monthly remuneration of employed persons by the size of enterprises is as follows: Large business – 1 205.6 GEL, Medium business – 1 291.2 GEL and Small business – 1 017.2 GEL.

Number of employees by regions is the largest in Tbilisi – 64.6 percent, Adjara – 9.9 percent, Kvemo Kartli – 6.8 %, Imereti – 5.5 %, and Samegrelo-Zemo Svaneti – 4.0%.

Trade sector has the highest share (39.8%) in the total turnover in business sector, followed by arts, entertainment and recreation with 23.9 percent share, manufacturing – 9.1 percent, construction – 5.7 percent, transportation and storage – 5.7 percent, electricity, gas, steam and air conditioning supply – 4.3 percent and other sectors with 11.4 %.

Also, manufacturing (21.4 %), trade (17.2 %), construction (14.7%) and transportation and storage (9.8 %) are on the top four places in business sector production value.

Geostat says that in the first quarter of 2019, trade, manufacturing, and human health and social work activities are leading in the business sector by a number of employees (accordingly with 26.6 percent, 12.6 percent, and 10.6 percent share). However, enterprises engaged in construction activities (9.0 percent), transportation and storage (8.3 percent) and accommodation and food service activities (5.6 percent) also have a significant share.