IMF official: inflation in Georgia “normalising”, approaching National Bank’s 3% target

Subir Lall, the Deputy Director at the Middle East and Central Asia Department of the International Monetary Fund, on Monday said inflation in Georgia was “normalising” and approaching the three percent target level of the country’s National Bank.

In his summary of the two-week visit of an IMF mission in Georgia, Lall also shared recommendations for “stability and sustainability of Georgia’s economy to continue, as well as reforms that will help Georgia on its way to join the European Union”.

Joining the EU will certainly help Georgia in many ways - it contributes to strong politics, stable growth and improvement of living conditions”, he said, adding the IMF recommended a “cautious approach” to the normalisation of monetary policy and that it was “also important to ensure the security of the central bank”.

Lall noted the Georgian economy continued to “develop well”, crediting “three years of good growth” with the outcome.

We expect this growth to slow to 5.7 percent. For three years, the growth factor was different, and now this growth will slow down and reach the average”, the Fund official added.

A report based on the IMF mission visit to Georgia will be published by the end of May, Lall also said.