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February 13, 2017 Kh-Index | Khachapuri becomes cheaper for foreign currency earners
13 February 2017

In January, the cost of cooking one standard Imeretian khachapuri continued to increase, ranging from 3.56 GEL (Batumi and Tbilisi) to 3.92 GEL (Kutaisi), with the average cost being 3.67 GEL. The new average price is 1.9% higher than the price in January 2016. As for month-to-month development, the price of khachapuri is 1.3% higher compared to the previous month (December 2016).

Is Lari Hitting Our Dinner Tables?
11 February 2017

“The Arab Spring was a revolution of the hungry.” As stated by The Boston Globe’s journalist Thanassis Cambanis in his 2011 article claiming that in countries where access to food was an issue, “hitting the dinner table” is not a good idea. In order to demonstrate the importance of food prices, he went even further and reminded his readers that when food price inflation in Egypt reached almost 19%, the president of the country had to resign.

The Foreign Exchange Rate’s Impact on the Balance of Payments and the Financial Sector
01 December 2016

Furthermore, high dollarization makes depreciation a dangerous process for the financial sector, as many people with loans or debts in US dollars are unable to pay. In addition, high and persistent dollarization constrains the effectiveness of the monetary policy, as the transmission of the monetary policy to the market interest rates and real variables are rather limited.

The Exchange Rates of the Georgian Lari and the Armenian Dram in Comparison, 2014-2015
07 November 2016

Both Georgia and Armenia have been subject to negative external economic shocks, particularly through remittances and exports, in 2014 and 2015, yet the macroeconomic adjustment of the countries appears to have been different. While the GDP growth of both countries remained relatively stable at around 3% in both years, the exchange rate of the Georgian Lari (GEL) depreciated by a 29% in 2014-2015 compared to 15% for the Armenian Dram (AMD).

October 31, 2016 FPI | Food Prices Start to Go Up
03 November 2016

Georgian retail prices increased at the end of October. Driven by seasonal fruits and vegetables, ISET’s Retail Food Price index gained 2.2% m/m (compared to the last week of September). However, compared to October 2015, we still observed a significant 13.5% decline in food prices.

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