Commodities - Georgia

Georgia

The nominal value in Georgia's Commodities market is forecasted to reach US$28.04bn in 2024.
It is anticipated to demonstrate an annual growth rate (CAGR 2024-2028) of 3.53%, leading to a projected total amount of US$32.22bn by 2028.
The average price per contract in Georgia's Commodities market stands at US$0.07 in 2024.
When compared globally, the in the United States achieves the highest nominal value (US$45,690.00bn in 2024).
In Georgia's Commodities market, the number of contracts is expected to reach 429.80k by 2028.
Georgia is experiencing increased interest in trading commodities, with a focus on energy contracts in the commodities market.

Market

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Currency

Analyst Opinion

The Commodities market in Georgia has been experiencing a notable shift in recent years, reflecting global trends and local economic developments. Customer preferences in Georgia are increasingly leaning towards investing in Commodities as a way to diversify their investment portfolios and hedge against market volatility.

This growing interest is driven by the potential for high returns and the opportunity to access global markets without direct ownership of physical assets. Trends in the market show a rising demand for Commodities trading platforms and investment products in Georgia. Investors are attracted to the transparency, liquidity, and ease of trading that these platforms offer.

Additionally, the integration of technology in Commodities trading has made it more accessible to a wider range of investors in the country. Local special circumstances, such as Georgia's strategic location at the crossroads of Europe and Asia, play a role in the development of the Commodities market. The country's strong trade relations with neighboring countries and its efforts to position itself as a regional financial hub have contributed to the growth of Commodities trading activities.

Underlying macroeconomic factors, including stable economic growth, favorable government policies, and increasing foreign direct investment, have created a conducive environment for the expansion of the Commodities market in Georgia. These factors have boosted investor confidence and attracted more participants to the market, driving further development and innovation in Commodities trading.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.