Economy Minister Turnava: inflation will return to 3% by end of 2022
Turnava said that Georgia is ‘the most ready in the region’ to start negotiations with the US on free trade, noting that the government in 2022 will intensify its efforts to expand free trade regimes. Photo: the Georgian Economy Ministry/Archive.
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The inflation rate in Georgia will return to 3% by the end of 2022, Economy Minister Natia Turnava stated earlier today, noting that high inflation is ‘one of the most important issues’ the Georgian population currently faces.
The inflation rate in November this year grew by 0.6% compared to the previous month, with annual inflation rate amounting to 12.5%.
In an address to the Georgian parliament, Turnava noted that in 2021 the inflation rate in the country ‘instantly tripled,’ adding that the only reason for this was the global pandemic.
She also stated that despite these challenges, the country’s national currency is ‘substantially stable as a result of balanced economic policy.’
Minister Turnava stressed the importance of the development of ‘export and import-substitute production’ in Georgia in order to reduce the country’s import dependence as a result of which the population will not be affected by an increase in the price of products on foreign markets.
Overcoming poverty
Turnava also touched upon the issue of poverty in the country and stated that the fight against it is ‘the main direction of our economic policy.’
She welcomed the recent initiative of Prime Minister Irakli Garibashvili which will provide jobs for socially vulnerable citizens who are fit for work instead of social assistance.
This is a project based on the successful experience of European countries and will give motivation to socially vulnerable and able-bodied people to work and receive remuneration,” Turnava said.
Per data from the Social Service Agency, more than 637,000 people receive social assistance in the country. Photo: Nino Alavidze/Agenda.ge.
Development of Georgian manufacturing
Minister Turnava stated that the government aims to increase the employment rate in Georgia by developing Georgian business and manufacturing, adding that the goal of the state is to achieve a ‘sovereign investment grade,’ which will provide investors with even more guarantees for sustainable development.
She stated that the government provided a ‘peaceful, predictable and stable’ environment for business.
This achievement is reflected in various international ranking evaluations. Georgia has been able to maintain its sovereign credit rating by ensuring resilience to economic shocks, while the credit ratings of many countries have deteriorated,” noted Turnava.
‘Georgia ready to start negotiations with the US on free trade’
Turnava said that Georgia is ‘the most ready in the region’ to start negotiations with the US on free trade, noting that the government in 2022 will intensify its efforts to expand free trade regimes.
The spirit of bipartisan support was reflected in a letter from US congressmen just a few days ago to the US Trade Representative urging him to start direct free trade talks with Georgia. This is a very promising message,” said Turnava.
She also stated that 2021 is the year of ‘rapid recovery and a good precondition for further peaceful development.’
The average monthly salary in Georgia in the third quarter of 2021 has increased by 129 GEL (about $41/€36) compared to the same period last year, totalling 1,368.5 GEL ($441/€392), the latest data of the National Statistics Office of Georgia (Geostat) show.
The Consumer Price Index in November 2021 grew by 0.6% compared to the previous month, while the annual inflation rate in Georgia stood at 12.5%, the latest inflation data of the National Statistics Office of Georgia (Geostat) show.
The unemployment rate in Georgia has increased by 2.5% in the third quarter of 2021 compared to the same period of last year, amounting to 19.5%, the National Statistics Office of Georgia (Geostat) reports.
The head of the National Bank of Georgia (NBG) Koba Gvenetadze says annual inflation will be higher than earlier expected.
Georgia's estimated GDP increased in October 2021 compared to the same period last year, and totalled 6.9% year-on-year, while in January-October of 2021 year-on-year growth amounted to 10.5%, preliminary data of the National Statistics Office of Georgia (Geostat) show.
The new EU-funded online platform Eastern Partnership (EaP) Trade Helpdesk was launched on December 15, which aims to support trade and investment between the EU and Eastern Partnership countries. The platform will facilitate ‘opening new market opportunities’ both for importers and exporters in the EU and the EaP countries.
Electricity production in Georgia decreased by 5.9% in 2020 compared to the previous year, and totalled 11,159.8 million kWh of electricity, a survey conducted by the National Statistics Office of Georgia (Geostat) read.
The Georgian parliament has approved the updated state budget 2022 for Georgia, planned with an economic growth forecast of 6%. The budget amounts to 19.1 billion GEL. The document was approved by 78 votes in favour and one vote against earlier today.
Nominal Gross Domestic Product in Georgia equalled 15.99 billion GEL in the third quarter of 2021, and real GDP grew by 9.1%, while the GDP deflator (inflation measure) increased by 9.4% in the reporting period, preliminary data from the National Statistics Office of Georgia (Geostat) show.
Commercial banks in Georgia loaned 41.40 billion GEL and received deposits of 35.75 billion GEL in November of this year, the National Bank of Georgia (NBG) reports.
Georgia and the United Arab Emirates (UAE) signed an agreement on starting free trade negotiation during Dubai Expo 2020 earlier today, the Georgian Economy Ministry reports.
The Consumer Price Index in December 2021 grew by 0.3% compared to the previous month, while the annual inflation rate in Georgia stood at 13.9%, the latest inflation data of the National Statistics Office of Georgia (Geostat) show.
Minister of Environmental Protection and Agriculture of Georgia Levan Davitashvili has replaced economy minister Natia Turnava, with the reshuffle announced by prime minister Irakli Garibashvili at today’s government meeting.
Natia Turnava, the former Georgian Economy Minister, has been elected to the Board of the National Bank of Georgia following a vote in the Parliament, the country’s legislative body announced on Tuesday.