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The WB: GEL Exchange Rate is not the Main Task

The WB: GEL Exchange Rate is not the Main Task

GEL exchange rate is not the main task, – the World Bank’s regional director for Europe and Central Asia Hans Timmer says.

He declares, that stabile exchange rate is not always a sign of success. External shocks are frequent and flexible exchange rate of GEL is more effective. Timmer notes, that GEL trend should be naturally developed in the equilibrium of demand-supply.

He considered the vulnerable groups in the country, who are dependent on the remittances from abroad and announced about getting less money for such entities due to strengthening of GEL.

Representative of the Word Bank made this statement after submitted economic report of the region. The bank increased GDP rate from 3% to 3,4% in this year. He noted, that forecast improvement is related to the tourism sector and investment growth, as well as pre-election fiscal stimulus.

The bank predicts that the growth should be accelerated up to 5,2% in the next year, which should be stimulated by the improved conditions on the external markets.