Georgian PM says “rapid” economic growth, “effective” management policies have helped restore lari exchange rate

Georgian Prime Minister Irakli Kobakhidze on Thursday said the country’s “rapid” economic growth and “effective” management policies had played a “crucial” role in restoring the exchange rate of the national currency, the lari, to its “original value after a short-term fluctuation”.

Acknowledging the importance of a stable national currency for the economy, the Prime Minister commended the National Bank and its Governor Natia Turnava for “effectively” managing the currency stabilisation process.

[W]e had a short-term fluctuation, on which the [political] opposition had high hopes, however, thanks to the rapid economic growth and effective management policy, the exchange rate of the lari returned to its original value very soon”, Kobakhidze said at today’s Government meeting.

He also cautioned against potential risks by alleging past attempts by the opposition to “influence the central bank” and emphasised the Government’s commitment to “maintaining economic progress and stability”.

You all remember how, at one time, the opposition and their supporters and friends tried to fill the National Bank with their own people. I do not even want to imagine what would happen if the Bank were run by the opposition’s employees today. We have seen similar situations in the past, and we cannot let it happen again”, Kobakhidze said.

He also said the Government was expecting a “successful tourist season and positive economic indicators” this year.

We are experiencing rapid economic growth and according to preliminary data a high growth rate is expected to be recorded in June. We are observing very positive trends and anticipating a successful tourist season”, the PM pointed out.

The available data for the first two quarters is promising and encouraging. Given these conditions, we have all the necessary conditions to achieve better economic indicators this year compared to last year”, he added.

The Prime Minister also said the “high” growth and “fiscal consolidation” in the first two quarters of the year had led to a ₾519 million ($186.04mln) increase in the state budget.