Page 14 - Caucasus Outlook 2023

The long-term fixed-price contracts for gas supply and a shared border
with Russia are expected to help offset any commodity price spikes.

Monetary policy is expected to remain tight until inflationary pressures
subside. Inflation is likely to have regressive impacts, disproportionately
affecting lower-income households and those reliant on incomes from
social assistance. These may have longer-term welfare impacts through
losses in human capital and other assets.

2.1.4 Industrial production

Industrial production in Georgia rose 17.6% y/y in 3Q22, easing from
23.10% growth in the previous period. Production increased at a slower
pace for both electricity, gas, steam & air-conditioning supply (17.4% vs
48.0%) and manufacturing (17.8% vs 20.9%). Meanwhile, output
continued to grow for both mining & quarrying (17.0% vs 9.7%) and
water supply sewerage, waste management and remediation activities
(14.4% vs 6.6%).

Manufacturing production in Georgia decreased 1.58% in June over the
same month in the previous year.

14 Caucasus Outlook 2023 www.intellinews.com