National Bank reviews inflation, banking, foreign sectors in December macroeconomic analysis
The National Bank of Georgia on Monday published an analysis of the current situation and macroeconomic parameters in the country's banking and financial sectors. Photo: Nino Alavidze/Agenda.ge
Tweet 
Share
The National Bank of Georgia on Monday published an analysis of the current situation and macroeconomic parameters in the country's banking and financial sectors, reviewing inflation, deposits and loans with dollarisation share in the portfolio and foreign sector.
Inflation
The NBG said annual inflation in December amounted to 0.4 percent, and prices increased by 0.1 percent compared to November.
It said the low inflation was caused by the downward trend of local inflation, which was the result of a “strict” monetary policy.
Real effective exchange rate of the Georgian national currency, the lari, maintains a strong position. This, together with the gradual reduction of external shocks, helps to keep the imported inflation at a low level. Inflation of locally produced products decreased to 3.6 percent in December”, the Bank said.
Data in the banking sector:
- In November, excluding the effect of the exchange rate, loans increased by 16.3 percent annually
- Based on the growth rates of foreign and national currency deposits, dollarisation of deposits in November 2023 increased by 0.3 percentage points compared to the previous month and amounted to 50.8 percent
- In November, dollarisation of the total credit portfolio increased by 0.2 percentage points from the previous month and equalled 45.5 percent
Foreign sector:
- In November, the import of goods decreased by 7.6 percent year-on-year.
- Registered exports of goods decreased by 1.8% year-on-year in the same month.
- There was no significant change in official international reserves in November, which slightly increased compared to the previous month and amounted to $5.1 billion
The NBG explained the decrease in the imports was mainly caused by the decrease in the import of intermediate goods, while the decrease in the exports was largely caused by the decrease in the export of intermediate goods.
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.
The Georgian economy grew 5.9 percent year-over-year in November, while the average real GDP growth between January and November equalled 6.9 percent, the National Statistics Office of Georgia said on Friday.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday said the institution was expecting stability “in all segments” of the domestic financial system, including in the foreign exchange market, following a “historic” strengthening of the national currency, the lari.
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.
Gogita Todradze, the Head of the National Statistics Office of Georgia, on Tuesday said annual inflation across the country in December had amounted to 0.4 percent while the overall rate continued a downward trend throughout the past year.
Remittances to Georgia increased from the United States and European Union member countries in November and went down by 76.17 percent from Russia, the National Bank of Georgia said in its latest update of the figures.
The Georgian economy is projected to grow 4.8 percent in 2024 in the January edition of the World Bank’s Global Economic Prospects report, published on Wednesday.
Fitch Ratings, a global credit rating agency, has affirmed Georgia’s Long-Term Foreign-Currency Issuer Default Rating status at ‘BB’ rating, also maintaining the assessment of the financial outlook for the country’s financial developments as “positive”.
The National Bank of Georgia on Monday said a regulatory framework for securitisation, the process in which certain types of assets are pooled so that they can be repackaged into interest-bearing securities, would be put into effect in Georgia “in accordance with the best international standards”.
Natia Turnava, the Acting Governor of the National Bank of Georgia, on Wednesday met international investors together with the Deputy Finance Minister Mirza Gelashvili in Vienna, where the officials arrived to participate in the annual Central and Eastern European Forum of Euromoney, a magazine covering global capital markets, between Tuesday and Wednesday.
Remittances to Georgia increased from the United States and European Union member countries in January and went down by 75 percent from Russia, the National Bank of Georgia said in its latest update of the figures.