ECONOMY
13.03.24 18:09
The National Bank of Georgia on Wednesday said it was continuing its exit from a tight monetary policy by reducing the refinancing rate by 0.75 percentage points, down to 8.25 percent.
The Bank said both domestic and external factors had contributed to sustaining a “low inflation environment” in the country, with headline inflation “well below the target”.
The low inflation environment helps the inflation expectations decline, which further significantly lowers the inflationary risks in the medium term. Other things equal, inflation is expected to remain below the target of three percent at the beginning of 2024, while stabilising close to it in the medium term”, the NBG said.
The central bank also highlighted “major inflationary risks” by citing Red Sea “tensions” and normalised domestic economic activities.
The hostilities in this region are still ongoing; however, shipment costs, after surging in December and January, declined to some extent in February. Meanwhile, as it was expected, local economic activity is gradually approaching its potential trend [...] in January, annual economic growth equalled 5.8 percent, which indicates the neutralisation of demand-driven inflationary pressures”, the Bank said.
The body also shared its projections, saying with the gap between economic activity and its pre-pandemic trend being fully closed, it anticipated growth of economic activity in 2024 to gradually normalise around that of the potential gross domestic product.
The NBG said it would continue to monitor developments in the economy and financial markets and use “all available tools” to ensure price stability.
agenda.ge
Read: 289
Write comment
(In their comments, readers should avoid expressing religious, racial and national discrimination, not use offensive and derogatory expressions, as well as appeals that are contrary to the law)
News feed
-
Speaker meets French Senate delegation
18:0029.04.24
-
17:3129.04.24
-
Ruling party official rejects claims on transparency of NGO funding
16:3829.04.24
-
15:5229.04.24
-
Citizens of Georgia will be able to travel to China without a visa from May 28
15:0029.04.24
-
Georgia in IMF top 10 with highest unemployment decrease over 12 years
14:1829.04.24
-
13:3729.04.24
-
Shalva Papuashvili: It's time to stand together
12:5929.04.24
-
12:3729.04.24
-
Police arrest six, seize illegal firearms, ammunition in capital, western regions of Georgia
11:0529.04.24
-
Georgia’s Public Safety Command Centre hosts UN permanent representatives
10:3029.04.24
-
The struggle for the North-South corridors and for access to the Indian Ocean
9:5529.04.24
-
Irakli Kobakhidze: These resolutions were worthless then and they have no value now
18:0326.04.24
-
Special Investigation Service exposes employee of Ministry of Internal Affairs to coercion
17:1126.04.24
-
16:3026.04.24
-
Irakli Kobakhidze: Non-transparent NGOs have tried to organize a revolution twice in this country
15:4526.04.24
-
15:0026.04.24
-
GeoStat: The number of emigrants increased by 95.6% in 2023
14:0726.04.24
-
Shalva Papuashvili: Visa liberalization will not be canceled
13:3626.04.24
-
Turkey is extending a hand of reconciliation to Armenia. Yerevan must seize opportunities
12:4326.04.24
-
11:5226.04.24
-
10:0026.04.24
-
From 'alliance' to open hostility: Armenia and Russia
19:0325.04.24
-
17:5425.04.24
-
17:0025.04.24
-
Lithuanian Ambassador: Foreign influence bill contradicts EU recommendations
16:1025.04.24
-
Shalva Papuashvili: We hear statements and concerns from the US State Department, Brussels
15:3025.04.24
-
14:5725.04.24
-
14:0625.04.24
-
13:1425.04.24
-
Defense Committee Chair hosts Head of NATO Liaison Office in Georgia
12:3025.04.24
-
11:5725.04.24
-
11:1125.04.24
-
Rally against draft law "On Transparency of Foreign Influence" underway near Parliament
10:0025.04.24
-
MIA to identify individuals calling for blocking roads artificially during Rustaveli Avenue rallies
18:0024.04.24
-
Lazare Grigoriadis leaves prison
17:3024.04.24