Around two years ago, ISET-PI published a blog article on the problem of over-indebtedness in Georgia. The article stressed the idea that due to notably increased access to finances, an aggressive marketing campaign provided by financial institutions, and poor socio-economic conditions throughout the country, Georgians (particularly the poorest) are mired in a swamp of debt, from which they are unable to escape.

In September 2016, the average price of cooking one Imeretian khachapuri stood at 3.43 GEL. Compared to the previous month (August 2016) the Khachapuri Index gained 8.6%. The upward trend in Index at this time of the year is mostly related to the seasonal increase in the price of cheese (due to dwindling supply of fresh milk). While going up in monthly terms, the Index actually dropped 0.8% compared to the same time of last year (y/y). As shown in the chart, the main contributors to Khachapuri Index annual deflation were eggs (-7%) and cheese (-3%). All other ingredients increased in price: milk (1%), flour (2%), yeast (9%), and butter (17%). Interestingly, prices fell y/y for locally produced goods (eggs and cheese); prices went up for goods that are imported (yeast and butter) or use imported intermediate inputs in their production (flour and milk).

“Commercialization of farmers can happen only if land consolidation occurs and farmers benefit from economies of scale” – Minister of Economy and Sustainable Development of Georgia, Giorgi Kobulia stated at the Rural Conference 2019 held in Tbilisi last week.

Have you ever wondered why the color of the United National Movement (UNM) is red while Georgian Dream (GD) is blue? Why not green and orange? It might be that red and blue offer a contrast, and they also symbolize quite different things. And, contrast is indeed what they each seek. These two parties have dominated Georgian politics since 2012, and it is now difficult to recall the subject they built a consensus around or even one that they have tried to discuss.

In February 2019, Georgian power plants generated 939 million kWh of electricity, which compared to the previous year represents a 0.5% increase in total generation. On the demand side, consumption amounted to 1,037 mln. kWh, a 2% decrease on an annual basis. Although the negative gap between generation and consumption decreased by 22% (from -126 to -98 mln. kWh), compared to the corresponding month of the previous year, it remained substantial.