A collaborative report by the USAID Economic Security Project, the PMC Research Center, and the ISET Research Institute delves into the analysis of various sectors in the economy, shedding light on development trends and challenges they face.
The findings reveal significant growth within the light industry sector. In 2022, the furniture sector experienced a notable increase in turnover, soaring by 17.7% and reaching 293 million GEL. Similarly, the packaging industry witnessed a robust upswing, with turnover surging by 18.8% to a total of 824 million GEL. The construction materials sector also demonstrated impressive growth, as its turnover spiked by 21.6% to reach 1.7 billion GEL.
Despite the sector’s progress, its development is not without obstacles. The construction materials industry encounters challenges related to workforce availability and compliance with export standards. The scarcity of appropriate laboratory infrastructure within the country necessitates sending materials abroad for certification, posing an inconvenience to businesses.
Moreover, the export direction and certification pose significant hurdles. The absence of requisite standards in the local market hinders entry into the EU market, impeding competitiveness. Local laboratories are ill-equipped to issue certifications to companies, leading to reliance on foreign countries for certification. Consequently, local businesses face higher costs and prolonged certification processes, impacting their price competitiveness.
This situation creates an imbalance between local companies and importers, as imported products are not subjected to the same level of scrutiny. Consequently, the country remains heavily dependent on imports, while local companies face challenges and disadvantages in meeting international standards and market demands.
By Mariam Gorkhelashvili
