September 2015 Macro Review | What doesn’t kill us, makes us stronger
17 September 2015

• In July 2015, domestic production in Georgia increased by 3% annually, maintaining a stable and positive trend.

• Consumer price inflation reached the highest value (4.9%) in two years. The 1 August 2015 increase in electricity tariffs is likely to put some additional upward pressure on consumer price inflation in the coming months.

• Compared to the previous month, the value of the Georgian lari has stabilized against the dollar in July and appreciated slightly against the currency basket of Georgia’s trading partners.

• Export growth continued to decline in annual terms, reflecting the declining demand for Georgian exports from main trading partners, including Russia, Azerbaijan, Turkey and Ukraine.

• Bulgaria became Georgia’s fastest-growing export destination in July.

• The new excise tax adopted by the government at the beginning of the year increased annual tax income from excise by 44% and contributed 37% to the total increase in government income from all taxes.

According to Geostat’s rapid estimates for July, Georgia’s real GDP increased by 3% annually. This growth rate, although not spectacular, comes as welcome news for the economy. The July estimate is still above the official IMF and EBRD forecasts for Georgia’s annual growth and is the fourth-highest growth rate value since the beginning of the year.

Related indicators that closely track monthly production changes, like VAT payer’s turnover and electricity consumption, both increased in July, by 7.4% and 2.7% respectively.