BAKU, Azerbaijan, Jan.21
By Tamilla Mammadova – Trend:
In the coming years, the economic activity of Georgia will maintain current trends, Trend reports with reference to National Bank of Georgia (NBG).
The trade balance of goods and services continues to improve, which positively affects the growth of real GDP, said NBG.
Meanwhile, the negative impact of monetary tightening on economic growth amid negative economic growth is also observed.
In the baseline scenario, real GDP is projected to grow by 4.5 percent in 2020.
“In the medium term, as the influence of external shocks increases and monetary policy rates fall to a neutral level, economic growth is expected to improve to five percent,” noted NBG.
According to the baseline scenario of the National Bank, inflation will gradually return to the target level. In particular, in the first half of 2020, inflation will remain above the three percent target based on interim spending due to the recent depreciation of the exchange rate.
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