Starting from October 15, Georgian consumers have to pay about 5-10 tetri more for one loaf of bread. Many large producers increased their prices.

After the break-up of the Soviet Union, Georgia went through a process of civil war and economic collapse. Official estimates suggest that Georgia’s GDP shrunk by more than 70% between 1990 and1994.

This week marks the first anniversary of the “ISET Khachapuri Index” in The Financial. During the last 12 months, our faithful readers have followed the ups and the downs of the index and learned many economics lessons in the process.

ISET-PI played a relatively minor role in this project, supporting a consortium consisting of Ecorys (Netherlands) and CASE (Poland). The study was commissioned by the European Commission (DG Trade). The Georgian component of the study identified considerable compliance costs related to the EU-required phyto and veterinary controls, reflected in higher prices for meat and meat products, and an increase in EU meat exports to Georgia. These findings were reported to the Georgian Prime Minister’s office and to the consortium members.

ISET-PI played a relatively minor role in this project, supporting a consortium consisting of Ecorys (Netherlands) and CASE (Poland). The study was commissioned by the European Commission (DG Trade). The Georgian component of the study identified considerable compliance costs related to the EU-required phyto and veterinary controls, reflected in higher prices for meat and meat products, and an increase in EU meat exports to Georgia. These findings were reported to the Georgian Prime Minister’s office and to the consortium members.