Geostat has released its rapid estimate of real GDP growth for February 2023. The estimated growth stands at 5.8%, while the average real GDP growth for January-February 2023 reached 7.1%.

In 2022 Georgia stayed on the path of recovery, exceeding experts’ expectations of economic performance. According to GeoStat’s preliminary estimates, the real GDP continues to show double-digit growth rates, measuring at 10.1% y/y in 2022 – which is remarkably close to the NBG’s real GDP growth expectation of 10% from October 2022.

In March 2023, the average cost of cooking one standard portion of Imeretian khachapuri stood at 6.54 GEL. The latest average price is 10.9% higher than in March 2022. Whereas in month-to-month developments, the price of a khachapuri decreased by 5.7% compared to the previous month, February 2023.

As a result of the update, the growth forecast for Q1 of 2023 was reduced by 0.1 percentage points to 2.6%. ISET PI’s second forecast for Q2 of 2023 puts GDP growth at a positive 1.6%.

Over the past few years, food prices have been increasing and Georgia has been facing food price inflation in the double digits. This is primarily due to international market trends that reflect concerns over decreased production, increased crude oil prices, as well as COVID-19 pandemic-related restrictions. Russia’s full-scale invasion of Ukraine increased pressure on international food markets already struggling with soaring prices.