Weekly Update from the Chief Economist

4 Jan, 2022
  • November GDP growth, in line with expectations, came in at 12.0% YoY and 3.4% compared to 2019
  • While exports, tourism, remittances, and imports were strong, fiscal consolidation was contributing negatively combined with slower growth in credit
  • In Q3 2021 balance of trade in goods, tourism, and remittances, turned positive while current account deficit improved, as expected
  • December CPI in Georgia up, though only on the back of low base effect, as monthly inflation print is well below the target, in line with projections
  • The price level increase in Turkey beats all expectations, especially in PPI part, wiping out the nominal depreciation
  • PPI-based GEL/TRY RER has not materially appreciated at all, suggesting to even lower, if any, pass-through on the Georgian economy and the GEL compared to our previous analysis
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