On Wednesday, May 18 Hans Timmer, Chief Economist of Europe and Central Asia (ECA) at the World Bank, paid a visit to ISET. He delivered a presentation entitled “Economic Outlook for the South Caucasus”, transmitting the idea that the countries of Europe and Central Asia (ECA), including Georgia, are transitioning to a situation – against the backdrop of a weakening global economy and volatility in international financial markets – which is called 'New Normal' and is characterized by the slow trend growth of global trade, low commodity prices, and less abundant availability of international liquidity.

Having just celebrated its 25th anniversary as an independent state, Georgia remains in a state of revolutionary flux. Just like a box of chocolate, this beautiful country is full of contrasting flavors, never losing the ability to surprise and fascinate at every twist and turn of its history.

Driven by fruits and vegetables, Georgian retail food prices are going down. In the first half of May, ISET’s Retail Food Price Index lost 2.9% y/y (compared to May 2015) and 1.8% m/m (compared to April 2016). The leaders in prices declines were cheese, greens, and coffee: down by 10.2%, 5.1%, and 2.7%, respectively.

On May 13, 2016, ISET hosted the head of the IMF in Georgia, Azim Sadikov, who delivered a lecture for participants of ISET’s Finance Course for Professionals. The subject of his lecture was “Macro-economic challenges in Georgia and the strengths and weaknesses of its emerging capital markets”.

More than three years ago the ISET Economist blog discussed the idea of deposit insurance and how this idea may apply to Georgia. Today, the deposit insurance scheme is not merely an abstract idea, but a fast-approaching reality. Recently, the Ministry of Finance of Georgia discussed a draft law on implementing the deposit insurance system in the country.