PM tells Parliament inflation expected to continue to decline
Georgian Prime Minister Irakli Garibashvili on Friday said inflation was expected to further decline in the country after being observed at 1.5 percent in May. Photo: PM's press office
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Georgian Prime Minister Irakli Garibashvili on Friday told the country’s Parliament inflation was expected to further decline in the country after being observed at 1.5 percent in May, a 0.1 percent reduction compared to the previous month.
In his annual report on Government’s work to lawmakers, Garibashvili named high inflation and increase in prices as “one of the main challenges” during and after the Covid-19 pandemic period, as well as since the start of the Russia-Ukraine war, “not only for Georgia but the whole world”.
A number of powerful economies have taken serious measures to combat inflation. Similarly, we took quite effective steps at the beginning of this year, and as a result we have 1.5 percent inflation [in May]”, he said.
Data published by the National Statistics Office of Georgia showed prices for food products - including oil, vegetables, milk and bread - decreased by 1.7 percent in May while prices for alcoholic beverages and tobacco increased by 1.6 percent. Prices for miscellaneous goods and services also went up by 6.2 percent.
Garibashvili also mentioned Government debt fell to pre-pandemic levels last year, with the figure expected to continue its downward trend.
During the pandemic, the Government debt exceeded 60 percent, while this year it will drop to almost 38 percent, which is a serious result in two years”, he said.
The PM also said the Gini coefficient - which measures inequality among values such as levels of income - had decreased in 2022 and stood at “historic low” in the country.
Statistics showed the Gini coefficient changed from 0.37 to 0.36 for total incomes compared to 2022, while it remained unchanged at 0.34 in total consumption expenditures.
Prices of certain food products and non-alcoholic beverages decreased month-on-month in Georgia in May, while prices of alcoholic beverages, tobacco, miscellaneous goods and services increased, the latest inflation data published by the National Statistics Office of Georgia on Friday shows.
The Administration of the Government of Georgia on Monday said the economic data of 2022 had shown the poverty rate in the country was at a “historic low” of 15.6 percent.
The European Bank for Reconstruction and Development expects the economic growth in Georgia to moderate to five percent in 2023 and 5.3 percent in 2024.
The National Bank of Georgia on Wednesday said even though inflation was “still high” in the country, the trends were following a “downward trajectory”, with the numbers expected to remain below the “target level” in the second half of the year.
Georgian Prime Minister Irakli Garibashvili on Friday highlighted the “growing trend” in the country’s foreign trade, “record increase” in exports in 2022, and rising trade turnover in his comments for presenting the annual report on the work of the Government at the Parliament.
Georgian Prime Minister Irakli Garibashvili on Friday said foreign direct investments in the country had hit a “record high” of $2 billion in his annual report on Government’s work to the Parliament.
Prices of certain food products and non-alcoholic beverages decreased month-on-month in Georgia in June, while prices of transport, housing, water, electricity, gas and other fuels increased, the latest inflation data published by the National Statistics Office of Georgia on Monday shows.
The monthly figure of inflation in Georgia stood at -0.5 percent for July in statistics compiled using a recently adopted methodology of the European Union’s harmonised indices of consumer prices, the National Statistics Office of Georgia said on Thursday.
Georgian Prime Minister Irakli Garibashvili on Monday said the country’s economic growth had hit 7.2 percent in the first six months of this year while inflation had decreased to 0.9 percent in August, before pledging support for farmers in the country’s east by ensuring subsidies for damaged grapes following hail, strong winds and heavy rains last week.