Sept 2020: money supply in Georgian economy up 16% y/y
One of the main reasons for the 16 per cent increase of the money supply in the Georgian economy is the crisis caused by the coronavirus pandemic, which is why the Georgian government has pursued a 'countercyclical' fiscal policy. Photo: Nino Alavidze/Agenda.ge.
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The money supply of the Georgian economy was up 16% in September 2020, the monthly review of the National Bank of Georgia (NBG) released today reports.
The M2 aggregate reached 13.7 billion GEL last month.
M2 is a calculation of the money supply that includes all elements of M1 as well as 'near money'. M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds, and other time deposits.
The dramatic growth of money supply in the economy started in 2017, namely the volume of money supply in January 2017 amounted to 6.23 billion GEL, in January 2018 to 7.99 billion GEL, and by January 2019 the volume of money supply in the economy amounted to 9.24 billion GEL", said the NBG.
One of the main reasons for the 16 per cent increase of the money supply in the Georgian economy is the crisis caused by the coronavirus pandemic, which is why the Georgian government has pursued a 'countercyclical' fiscal policy (increased spending and cutting taxes during a recession).
Estimated real gross domestic product (GDP) declined by 0.7 per cent in September 2020 year-on-year and by five per cent in the first nine months of 2020 year-on-year, show the latest data from the National Statistics Office of Georgia (Geostat).
The National Bank of Georgia has decided to keep the refinancing rate unchanged at eight per cent.
Georgia received $192.7 million from abroad in September 2020, which is 28.7 per cent more than the amount in September 2019, says the National Bank of Georgia (NBG). Russia, Italy and the United States were the largest remittance senders in Georgia in September 2020. Georgia received $35.13 million from Russia, $29.21 million from Italy and $22.65 million from the United States.
The National Bank of Georgia (NBG) has relaxed the monetary policy and cut the refinancing rate by 0.25 percentage points to 8 per cent, announces the NBG.
The National Bank of Georgia (NBG) has decided to increase the refinancing rate by 0.5 percentage points to 8.5%. The decision was made at a meeting of the Monetary Policy Committee today. Last month annual inflation stood at 3.6%; the NBG says that the reduction of inflation since last December is related to the subsidisation of utility fees.