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March 2023 | Money transfers from Russia grew by more than thousand percent over the year, driving significant appreciation of the Lari
27 March 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%.

Dollarization of bank deposits in Georgia: what everyone should know
07 February 2022

The term “dollarization”, commonly used among academic economists and finance specialists, has already entered Georgians’ everyday vocabulary. Few people, however, understand what dollarization is, how it comes about and why they should care. Below we try to fill this gap, explaining some basic concepts and discussing why and how dollarization affects ordinary people’s lives.

November 2020 | The khachapuri index increases by 12%
30 November 2020

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).

The Inflation Targeting Framework of the National Bank of Georgia: Is It the Right Model?
02 November 2020

As the Georgian Lari (GEL) briefly depreciated in September 2020, the National Bank of Georgia (NBG) once again became the subject of criticism for not being able to stabilize the exchange rate even though it had injected 120 million US$ into the economy. At a press conference (2020/09/16), the President of the NBG objected that the aim of the injection of US$ was not to strengthen the GEL since the NBG operated under a floating exchange rate policy. Rather, he went on to explain, the NBG’s constitutional duty was to ensure price stability on the basis of an inflation-targeting framework.

June 2020 | Will the downward trend continue?
09 July 2020

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).

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