Rate could be needed if core inflation rises. Policy stance until core inflation durably falls. Strong domestic demand and a tight labor market will likely warrant aĬautious and gradual approach to policy rate cuts to maintain a restrictive Management including to strengthen reserve coverage. “We welcome the NBG’s continued commitment to the inflation-targetingįramework, the floating exchange rate, and prudent international reserve “Given high uncertainty regarding global economic and financialĭevelopments and political conditions, policies should remain focused onĮntrenching macroeconomic and financial stability and maintaining the Global economic and financial conditions. Supported by infrastructure investments and an expected improvement in Over the medium term, growth is expected to remain close to potential, NBG’s 3 percent target, reflecting the factors described above including aĬontinued tight monetary policy stance with positive real interest rates. Little above 5 percent in 2023, while inflation would remain below the “Looking ahead, growth is projected to converge to its potential rate of a TheĪuthorities implemented structural reforms in the areas of tax policy andĪdministration, public investment management, fiscal risks, NBGĬommunications, and financial supervision. Reserves a small overrun in budget lending has been corrected. Were met, including on inflation, the fiscal balance, and international “All but one of the quantitative performance criteria for the second review Somewhat elevated amid strong domestic demand and a tight labor market with Core inflation has also declined but remains Restrictive monetary, fiscal, and macroprudential policies, and tighter Percent target due to lower commodity prices, lari appreciation, “High inflation has fallen sharply recently and is now below the NBG’s 3 Require banks to adhere to relevant sanctions has helped limit the impact of ![]() Theįinancial system remains sound and National Bank of Georgia (NBG) action to The authorities have taken advantage of relativelyįavorable conditions to rebuild fiscal and foreign exchange buffers. Buoyant tourism and a surge in immigration,įinancial inflows, and transit trade triggered by the war in Ukraine haveīoosted growth and fiscal revenues, and strengthened the current accountīalance and the lari. Limited adverse spillovers from Russia’s war in Ukraine and prudent “The Georgian economy has performed strongly since the pandemic, reflecting Million (about $40 million) available to Georgia. The agreement is subject to consideration by theĮxecutive Board in June 2023. Team reached staff-level agreement on policies for completion of the second “Following productive discussions, the Georgian authorities and the IMF Supported by an IMF Stand-By Arrangement (SBA). To conduct discussions on the second review of Georgia’s economic program Led by James John held meetings in Tbilisi during April 27 - May 10, 2023, ![]() Washington, DC: An International Monetary Fund (IMF) team ![]()
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