National Bank’s macroeconomic scenario projects 6% growth in 2023, 5% in 2024
The National Bank of Georgia on Tuesday published its latest macroeconomic scenarios, which forecast the domestic economy to grow by six percent this year and five percent in 2024. Photo: Nino Alavidze/Agenda.ge
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The National Bank of Georgia on Tuesday published its latest macroeconomic scenarios, which forecast the domestic economy to grow by six percent this year and five percent in 2024.
The scenarios, published for the purpose of the International Financial Reporting Standard IFRS 9, are intended for promoting “transparent, consistent and efficient” financial reporting in financial institutions, the NBG said.
The central bank said the main determinant of the growth was the “faster than expected” recovery of the economy's potential in the country, stimulated by increased productivity of production and investments in the current period.
In the wake of maintaining a stable macroeconomic situation in the country, the level of unemployment is gradually decreasing. In the base scenario, inflation remains below the target this year, which is largely due to the gradual decrease in the prices of energy carriers and food raw materials in the international market, the strengthening of the exchange rate, and the tightening of monetary policy”, it noted.
The institution also said local inflation had remained at a “high level” despite the “slow rate” of decline, which was mainly due to increase in prices in the service sector.
The NBG said the country's current account deficit was expected to widen, given the deteriorating competitiveness and regional risks as a result of the strengthened national currency.
Taking into account the expected normalisation of remittance flows in the subsequent period, this creates a devaluation pressure on the national currency”, the report reads.
The Bank said an increase in cargo turnover and the transit potential of Georgia was expected to increase with the backdrop of the implemented and planned infrastructure projects between 2023-2024.
Georgian Prime Minister Irakli Garibashvili on Monday reviewed the economic development of the country since 2012 in his end-of-year comments on the Government’s work, telling an event in Tbilisi the domestic economy had grown by ₾30 billion ($11.15bln) over the past three years.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday presented draft documents for the main directions of its monetary and exchange rate policies for 2024-2026 at the Parliament.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday said the country’s foreign exchange reserves were at a “historic high” and within the limits of an “adequate level”, in comments at the session of the Finance and Budget Committee of the Parliament.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Tuesday said access to diverse investment resources and innovative financial products could benefit the domestic private sector, in an event organised by the Financial Innovation Programme of the United States Agency for International Development.
The National Bank of Georgia on Wednesday said its Monetary Policy Committee had decided to decrease the refinancing rate by 0.5 percent, to 9.5 percent, following a “more pronounced” reduction in the domestic inflation rate than anticipated.
Irakli Kobakhidze, the head of the ruling Georgian Dream party, on Friday said the task of the Government was to “eradicate poverty” across the country.
Prices of certain food products and non-alcoholic beverages increased month-on-month across Georgia in December, while prices for clothing and footwear and furnishings, household equipment and maintenance decreased, the National Statistics Office said on Wednesday.
Deputy Economy Minister Vakhtang Tsintsadze on Wednesday said Georgia had managed “not only to maintain a high economic growth rate but also became one of the first countries in the wider region and in Europe” with related indicators over the past year, curbing inflation and bringing the numbers below the target three percent mark.
The National Bank of Georgia on Wednesday said it was continuing its exit from a tight monetary policy by reducing the refinancing rate by 0.5 percentage points, down to nine percent, due to “low inflation environment”.