Construction Cost Index increases in Georgia
BAKU, Azerbaijan, March 26
By Tamilla Mammadova – Trend:
In the fourth quarter of 2019, the Construction Cost Index (CCI) increased by 1.3 percent compared to the previous quarter in Georgia, Trend reports via the Georgian National Statistics Office (Geostat).
As reported, the change was mainly due to a 1.1 percent increase of prices for construction materials and a 1.4 percent increase in average monthly nominal wages of employees in the construction sector.
This contributed 0.62 and 0.43 percentage points to the total index change, respectively.
Compared to the fourth quarter of 2018, the CCI increased by 2.5 percent.
The latter was largely caused by 4.2 percent increase in average monthly nominal wages of employees in the construction sector, which contributed 1.3 percentage points to the annual index change.
The National Statistical Office of Georgia has begun publishing the Construction Cost Index since 2018. Its purpose is to reflect changes over time in prices for inputs (production factors – materials and services) used during the construction process.
This index is an important macroeconomic indicator and is necessary for accurate assessment of investment environment, also for planning and forecasting in construction sector.