Natia Turnava: IMF Assessment of Georgia Is Objective, Adequate, and Positive

The International Monetary Fund (IMF) has published the results of its regular consultations with representatives of the Georgian government, highlighting that inflation in the country has remained low. This outcome was supported by the National Bank of Georgia’s (NBG) tight monetary policy and the stability of the GEL exchange rate.

“Against the backdrop of inflation approaching the target, interest rates nearing the neutral level, and easing domestic demand pressures, the National Bank’s monetary policy stance is consistent with the current environment,” the report states.

According to the IMF's forecast, inflation will remain close to the target in 2025. Natia Turnava, President of the National Bank of Georgia, noted that the IMF’s forecasts align with those of the NBG, which she finds very encouraging.

“Their forecast regarding inflation — that it will remain close to the 3% target — coincides with our vision and positively assesses our monetary policy. The IMF confirms that it is consistent with current data, which is very encouraging for us,” said Turnava.

The IMF report also emphasizes that reserve accumulation should remain a priority for the National Bank. It commends the NBG’s ongoing efforts in this direction.

“Our vision aligns here too. We are doing everything possible to ensure that the National Bank continues to build up its reserves,” Turnava added.

The report praises the unexpectedly strong economic growth, achieved despite both domestic and geopolitical uncertainties. The IMF particularly highlights Georgia’s resilience to shocks and its sound macroeconomic environment. It also revised the country’s economic growth forecast upwards to 7.2%.

“Georgia’s economy has shown impressive resilience despite high domestic and geopolitical uncertainties. Since 2021, the average annual growth rate has exceeded 9%, inflation has returned to target after a two-year deviation, and public debt fell to 36% of GDP in 2024. These trends have increased GDP per capita and reduced unemployment and poverty,” the report says.

Finally, the IMF notes that strengthening the governance and independence of the National Bank remains a key priority. However, it acknowledges that progress has been made on previous recommendations, including filling board vacancies and appointing a president.