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However, starting from January this year the currency had been appreciating and spent months at a stable exchange rate ranging from GEL2.39 to GEL2.43 to the dollar. But since September the exchange rate increased again, moving to GEL2.61 to the dollar as of November 2. According to the central bank, the depreciation is temporary and caused by consumers' "false expectations" of depreciation in the autumn.
An increase in food and non-alcoholic beverage prices were the main contributor to both annual and monthly inflation in October.
According to the regulator, inflation is expected to come down before the end of the year.
4.2.2 PPI dynamic
Georgia’s PPI rises in August
Georgia’s annual inflation in domestic producer prices increased by 13.3% y/y in October, easing from a 13.4% rise in the previous month. September saw the highest producer inflation since April 2011.
Cost increased at a slower rate for manufacturing, which saw a 13.3% expansion (compared to 13.7% in September). Producer prices rose faster for both mining and quarrying (24.3% from 22.4% in September) and energy, gas, steam and hot water (9.5% from 9.2%).
On a monthly basis, producer prices edged up 1.1% in October.
4.3 Fixed investment
Georgia -Fixed capital investment 2011 2012 2013 2014 2015 2016
Gross fixed investment capital formation (local currency)
6,368.00 7,575.39 6,652.91 8,688.85 10,004.33 10,999.8
Gross fixed capital formation (% of GDP)
22.49% 24.83% 21.95% 25.85% 28.44% 30.40%
Source: CEIC
Georgia loan recipients get over €100mn from IFIs for infrastructure, private sector
FMO, the Dutch development bank, and the German Investment and Development Corporation (DEG) are to lend €65mn to Georgia's state-owned water company, agenda.ge reported on August 16 following a signing ceremony between the state-owned company and the development lenders.
16 GEORGIA Country Report December 2017 www.intellinews.com