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Georgian Population Spends 44% of Incomes on Food

The averaged bill amount at the trade networks are declining. This signifies the GEL depreciation has made the consumers to cut daily expenses on essentials compared to the previous years.

The averaged bill has shrunk by about 10% in 2015 compared to 2014. The quantity of consumers has not diminished at the network, but the population’s solvency has weakened and Georgian citizens have to spend less money on essentials, Irina Qosashvili, the head of the Goodwill trade network, noted.

As to the money amount the consumers daily spend at the Goodwill network, the averaged bill amount differs due to the specific stores.

The averaged bill is higher in Saburtalo, lower in Vake. As to Dighomi, where corporate clients buy goods and products, the averaged bill amount is high, Qosashvili said.

Consumers spend comparatively less money in the Nikora network. The averaged bill in the network of supermarkets declined by 2.6% in 2015 compared to 2014, the Nikora management told the Commersant news agency.

The GEL depreciation and the limited solvency of our population have led to a declination in the averaged bill amount, the company representatives noted.

The situation has not changed in January 2016 either and, in practice, it is analogical to the 2015 indicators, they said.

As to the Two Steps network, where consumers buy essentials every day, the averaged bill amount has increased, on the contrary. The network management asserts that despite increased consumer prices, the clients cannot abandon buying essentials.

The averaged bill amount has increased because of two main factors, the company founder Giorgi Chkhaidze told the Commersant.

First, we have promoted public perception of our company and established closed and active communication with our clients. These factors have boosted the averaged bill. Another factor is related to the GEL depreciation.

“This signifies the GEL exchange rate volatility has affected the prices. To a certain extent, this factor has also increased the averaged bill. There is no tendency of declination in consumer expenses. Our clients are spending a little more compared to the previous years”, Giorgi Chkhaidze said

The averaged bill has increased by about 5%-10% in the network of Two Steps, he said.

According to Geostat, the national statistics services of Georgia, Georgian citizens spend 44% of their incomes on food products. Similar high expenditures on food products signify we live in the impoverished country. According to the Tabula magazine, in the western countries the ratio of food products in total expenditures is far lower: 6% in the USA, 8%i in Great Britain, 10% in Germany. Only in Pakistan and Nigeria public expenditures on food products exceed a half part of monthly incomes.

It should be noted that the 44% ratio is not the highest indicator for the past years. This indicator constituted 50% in 2011.