BAKU, Azerbaijan, May 5
By Tamilla Mammadova – Trend:
If the lari continues to devalue, Georgia will face double-digit inflation, said Otar Nadaraia, chief economist at TBC-Bank, Trend reports via Georgian media.
According to him, the pressure on the national currencies continues and most likely, if the current level of the lari is maintained, inflation by the end of the year will amount to 9 percent.
“It is not excluded that inflation will reach 10 percent by the end of the year. In addition to the lari exchange rate, consumer prices are also of great importance. The world economy is growing rapidly, and this is reflected in the cost of food, and this is very important, given the role that imports play in the consumer basket in Georgia,” the banker said.
As he noted, it is also very important in which direction the lari exchange rate will go further, and if the devaluation continues, the country will receive a double-digit inflation rate.
According to Nadaraia, April was a good month in terms of foreign tourism, and this gives hope that the inflow of foreign currency will help contain further depreciation of the lari.
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