Page 16 - GEORptAug22

4.0 Real Economy 4.1 Industrial production
Industrial production rose 40.6% y/y in Q1
Georgia’s industrial production rose 40.6% in the first quarter of 2022, up from 37.7% in the previous quarter, according to the National Statistics Office of Georgia (Geostat). Production expanded at a faster pace for almost all sectors such as manufacturing, mining and utilities.
4.2 Inflation 4.2.1 CPI dynamics
TBC Bank sweetens forecast for Georgia’s inflation growth
The research team of TBC Capital, the investment banking arm of TBC Group, has improved the forecast for both GDP growth and year-end inflation in Georgia in its weekly update.
TBC’s key macro projections remain bullish. They incorporate the risks of the ongoing global slowdown and the net impact of Russia’s invasion of Ukraine, but do not yet add material assumptions that would stem from higher coronavirus infection cases.
TBC sees this year’s economic growth in Georgia at 12.2% (up from the 10% prediction last week) and year-end inflation at 7.4% (down from 8.5%). Coupled with strong net inflows, the revised inflation outlook “further confirms
16 GEORGIA Country Report August 2022 www.intellinews.com