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Koba Gvenetdze Makes a Comment on Sharp Devaluation of GEL

NBG Forecasts Annual Target Inflation to Be around 3%

National Bank of Georgia (NBG) expects the 2018 target inflation rate to be balanced on 3% indicator. NBG plans to mitigate monetary policy moderately in midterm period, the NBG President told the Reuters.

The 2017 annual inflation rushed up to 6.7%, instead of balancing on 4% target indicator. In January 2018 annual inflation indicator declined to 4.3%.

“According to our forecasts, in all other equal conditions, the inflation indicator will continue declining to around 3% target indicator”, NBG President Koba Gvenetadze said. 

NBG expects the inflation indicator in February 2018 to be lower of the January indicator, despite consumer prices are volatile, Gvenetadze said.

“After 2.8% rise in 2016, Georgian economy grew by 4.8% in 2017, thanks to exports and money transfer from abroad. Highest pace of growth was recorded in processing industry, services and real estate field… In December NBG rose refinancing rate to 7.25% to 7%, but did not change the rate in January 2018”, Koba Gvenetadze noted.

“According to current early estimations, the 2018 economic growth will be around 4.5% and this is significant figure. We should consider this issue from conservative point of view”, Gvenetadze said.