In 2022 – 2023 basic reserve currencies decreased in comparison to the Georgian Lari respectively: EUR-21%, GBP-25%, CHF-17% and USD-19%. The chart shows the dynamics of these currencies over the previous 15 months in Georgia:
Apparently, GEL has been resistant over the past 15 months. Basic effect on GEL strengthening caused the political situation that resulted in significant flow of refugees and tourists and their savings from the neighboring countries. Notably this same reason produced a strong push for an increase in prices, that led in higher inflation.
According to GeoStat average customer prices spiked in 2022 by 11.9% (compared to 9.8% in 2021). This coefficient is calculated based on prices of 12 commodity groups monitored in 6 big cities of Georgia.
Finally, in different service areas the increase in prices feels even more apparent with notary fees climbing up by 95.6%, apartment rentals by 37.4%, suburban bus travel by 34.5%, school fees by 29.1%, diesel fuel by 23.7% and therapist consultation by 19.2%.
For further information please contact Ms. Irina Lopatina, Country Executive at our Eurofast office in Georgia, Tbilisi at firstname.lastname@example.org
Eurofast is a regional business advisory organization employing local advisors in over 21 cities in South East Europe & the Middle East (SEEME). The Organization is uniquely positioned as a one-stop-shop for investors and companies looking for professional services in Tax & Transfer Pricing – Payroll & Employment – Accounting & Compliance – Advisory & Corporate.