The Construction Cost Index in Georgia increased by 13.6% in the fourth quarter of 2021 compared to the same period of the previous year, the National Statistics Office of Georgia (Geostat) announced on March 24.
The increase in construction cost was mainly influenced by price changes for the following groups: construction materials – 9.64%, wages – 2.01%, machinery – 0.67%, transportation, fuel and electricity – 0.26% and other costs – 1.05%.
Cost of construction posted the increase in the reported period in comparison to the previous quarter as well, with a 4.8% increase, while the field posted a 21.8% reduction in the real value-added year-on-year throughout 2021.
A working group will be set up under the Economy Ministry to prepare recommendations and proposals for resolving the challenges in the construction sector, with the decision made earlier this week during the Georgian Economy Minister Levan Davitashvili’s meeting with the representatives of local construction companies. (Agenda/Business World Magazine)