BAKU, Azerbaijan, November 5
By Tamilla Mammadova – Trend:
The President of the National Bank of Georgia (NBG) Koba Gvenetadze declares, that the declined joint demand in the country has an impact on inflation reduction, Trend reports via Georgian media.
According to him, taking into account this factor, it is expected that inflation will be closer to the 3 percent target by the end of this year.
Gvenetadze spoke about it while presenting the monetary policy report.
“According to the NBG’s current forecast, real GDP will decrease by 5 percent in 2020, while it is expected to increase by 5 percent in 2021, which means that the current forecast has remained unchanged. Although real GDP growth forecast for 2020-2021 remained unchanged, the decomposition of this growth has changed slightly," Gvenetadze said
As he said, according to the updated forecast, while part of the firms may exit the market amid prolongation of weak external demand, hence reducing potential GDP, strong lending, on the other hand, strengthens the domestic demand.
"Such changes in driving forces means slightly less disinflationary process, which was also reflected on the inflation forecast,” Gvenetadze noted.
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