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4.0 Real Economy 4.1 Industrial production
Industrial production rises 8.4% y/y in 1Q20
Georgia’s industrial production increased 8.4% in the first quarter of 2020, easing from a 12.2% y/y rise in the fourth quarter last year, according to the National Statistics Office of Georgia.
Production expanded at a slower pace for manufacturing and electricity, gas, steam and air conditioning supply sectors. Meanwhile, output rose in the mining and water supply and waste management sectors.
4.2 Inflation 4.2.1 CPI dynamics
Easing inflation opens door to more rate cuts in Georgia
As expected, annual inflation continued to decline, reaching 4.8% in August, the central bank said in comments put out with the monetary policy decision. According to the current forecast, other things being equal, the NBG expects that the downward trend of inflation will continue over the rest of the year, and that the inflation rate will fall below the 3% target level in the first half of 2021 and then approach it from below.
17 GEORGIA Country Report November 2020 www.intellinews.com
