The research conducted in the framework of the project GEclose2EU has identified sectors, which have the potential of growth and expansion on local and international markets. The project is implemented by the Economic Policy Research Center (EPRC) in partnership with Enterprise Georgia Agency and supported by the Swedish Government and aims to provide technical assistance to the selected sectors.
As a result of study analysis of 17 product groups and 46 fields (which did not include service sectors, as these sectors are already included as target sectors of the project ‘GEclose2EU’) the study identified 5 potential sectors with 2 sub-sectors:
1. Apparel manufacturing; 2. Footwear manufacturing; 3. Production of leather and related goods; 4. Production of articles of wood and cork, articles of tea and other plaiting materials; 5. Production of furniture;
From the above listed fields, based on correlation of expenses and possibilities of development, the study identified following sectors: child apparel manufacturing (apparel production subsector) and toy production (wooden toys, as a subsector of production of goods from wood, which includes toy production).
The document was developed by applying the information and methodology of the International Trade Center (ITC), the World Trade Organization (WTO) and the Organization of Economic Cooperation and Development (OECD) as well as using the data of the National Statistics Office of Georgia (Geostat).
Interestingly, the above stated sectors together with textile, agriculture and wood production, footwear and apparel industries create a cluster, which generates opportunities for future development of these sectors. Based on the research, these clusters are on the early stages of development, having good potential of evolving and economic growth, especially in the post-crisis (COVID-19 pandemic) period, when the whole World, including Georgia, will face the reformation of the traditional economic structure.
Link to the detailed report is available here