BCI in the fourth quarter of 2018 has worsened, dropping to 29.9 index points, which is a 5.5 index point loss over the previous quarter. The BCI drop is based on the worsening of past performance and expectations in many business sectors. Compared to other sectors, manufacturing and agriculture assessed their past performance and expectations the most pessimistically. In contrast, the retail trade sector is the most positive.

The unique cross-country study compares interest rates for a set of retail credit products in Georgia and select transition economies. Preliminary findings suggest that the cost of credit in Georgia is lower than in the CIS countries which have been covered by the survey (namely, Kazakhstan, Russia, Ukraine and in many cases Armenia) while it’s somewhat higher compared to a cohort of Central and Eastern European Countries (CEE) - this is true especially for local currency loans.

The unique cross-country study compares interest rates for a set of retail credit products in Georgia and select transition economies. The results suggest that the cost of credit in Georgia is lower than in the CIS countries which have been covered by the survey (namely, Kazakhstan, Russia, Ukraine and in many cases Armenia) while it’s somewhat higher compared to a cohort of Central and Eastern European Countries (CEE) - this is true especially for local currency loans.

In the last two weeks of February, ISET’s Retail Food Price Index increased by 5% (compared to February 2017). On a monthly basis (compared to January 2018), food prices in Tbilisi’s major supermarkets increased slightly, by 0.6%. We recorded the biggest bi-weekly price increases for bananas (10%), cucumbers (10%), and beef (4%). Prices dropped the most for garlic (-9%), rice (-6%), and potatoes (-5%).

In the first half of February, ISET’s Retail Food Price Index increased by 4.8% y/y (compared to February 2017). On a monthly basis (compared to January 2018), food prices in Tbilisi’s major supermarkets held relatively steady and decreased only slightly by 0.1%. The sharpest bi-weekly price changes were recorded for fruits and vegetables.