Page 28 - Caucasus Outlook 2023

Analysts at TBC Bank predict a steady rise of Georgian wine exports in
2023 and around 9% growth in the following years. Taken together, this
year’s wobbly and war-torn markets strengthened ongoing trends of
market diversification among Georgian winemakers, something on
which the industry spends approximately GEL10-20mn ($3.5-4mn)
each year.

Georgia's world-famous Borjomi Mineral Water Company was partially
nationalised following a three-week strike by workers in May. The
government acquired part of the company's shares in a free transfer
deal. As a result, Russian oligarch Mikhail Fridman, who was the target
of international sanctions imposed against Russia, lost his controlling
stake in the company.

3.2 Real economy – Armenia

3.2.1 Retail

According to the National Statistical Committee, Armenia's retail trade
rose 15.5% in the first 10 months of 2022 from 2021 to over AMD3.4tn.
High growth rates were reported by wholesale and retail trade, repair of
automobiles and motorcycles (20%), construction (19.9%),
manufacturing (18%), administration and related activities (16.2%) and
accommodation and catering (12.8%). Wholesale trade grew by 24.3%
to about AMD2tn.
Stores accounted for 79.1% of the retail trade or about AMD1.1tn
showing 3.6% y/y growth. Consumer goods markets accounted for 4%
of the total or about AMD52.bn, having fallen by almost 14%.

Farmer markets accounted for only 1.1% of the total or a little over
AMD13.6bn. Their share dropped by 9.5% from the first ten months of
2021.

Kiosk trade dropped by 9.7% to 1.4% of the total or AMD18.6bn. Other
trade outlets grew by 2.9% to about AMD187bn or 14.4% of the total.

3.2.2 Banks

Together the 17 Armenia-based commercial banks earned AMD188bn
($479mn) in profits in the first nine months of 2022, up by AMD121.5bn
or 183.3% y/y, according to the Union of Banks of Armenia (UBA).

According to UBA, the profit in the third quarter of this year alone
amounted to about AMD76.6bn.

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