The average cost of cooking one standard portion of Imeretian khachapuri stood at 4.62 GEL in November 2020. This is 4.5% higher MoM (compared to October 2020), and 12% higher YoY (in comparison to November of 2019). The index maintaining an upward trend at this time of the year is typical and relates to the increasing price of cheese (due to the reduced supply of fresh milk).
ISET Policy Institute’s researcher Davit Keshelava was invited to appear on the Business Morning of TV 1 to talk about the methodology of the real GDP forecast proposed by the ISET Policy Institute and overview economic processes that played an important role in predicting recent real GDP growth. Davit pointed out that ISET-PI’s growth predictions are becoming increasingly accurate and in the previous year, the forecast error for the yearly real GDP growth was only 0.1 percentage points. Furthermore, he claimed that the optimistic forecast of July’s GDP growth can be explained by the increasing trend of Lari deposits, an expansionary monetary policy and the rising number of tourists visiting Georgia. In addition, Davit explained the main reasons behind Georgia’s reclassification from the lower middle income group to the upper middle group based on a recent publication of the World Bank. Watch the video from TV1 to learn more.
In June 2020, the average cost of cooking one standard portion of Imeretian khachapuri was 3.93 GEL. Compared to the previous year (June 2019), the Khachapuri Index gained 13%. While going up in yearly terms, the Index actually dropped by 4.2% compared to the previous month (May 2020).
The average cost of cooking one standard Imeretian Khachapuri in May 2020 stood at 4.18 GEL; 6.8% lower month-on-month compared to April. However, the Khachapuri Index did increase by 24.9% year-on-year (compared to May 2019). At this time of the year, the monthly downward trend in the Index is typically driven by a seasonal decline in cheese prices (due to the increased supply of fresh milk and a resulting lower demand for imported milk powder).
In the past several months the world has been rocked by profound economic and social turbulence. The COVID-19 epidemic has forced many countries around the world into widespread emergency lockdowns. Economic activity plunged dramatically in February-March 2020, with rapid indicators showing strong contractions in retail, restaurant business, and passenger transport.