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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
Georgian government raises inflation forecast for 2022 to 9.1%
The Georgian government has changed its inflation forecast for the current year; now it is expected at 9.1% according to the press service of the Cabinet of Ministers of Georgia. This is twice as high as the forecast when approving the state budget for 2022 – 4.5%.
According to the updated forecast, inflation will return to the target in 2023. According to the National Bank, inflation in the second quarter of 2022 will average 10.5%, in the third quarter it will slow down to 7.85%, and in the fourth to 7%.
Finance Minister Lasha Khutsishvili told reporters at the end of March that previous inflation forecasts were called into question, and this was due to
20 GEORGIA Country Report July 2022 www.intellinews.com