BAKU, Azerbaijan, April 6. Georgia’s inflation rate in 2022 is projected at 7 percent, and at 4 percent in 2023, Trend reports via Asian Development Outlook 2022 from Asian Development Bank (ADB).
According to the report, inflation in Georgia is projected to slow in 2022 amid further monetary policy tightening, however, it will remain increased due to electric utility hikes in the beginning of the year and, more importantly, higher global oil prices.
Georgia’s inflation rate is expected to slow down further in 2023 due to the expected weakening of the restrictions due to COVID-19 pandemic, and the weakening of fiscal incentives, as well as improved supplies of essential goods and services, and some decline in global commodity prices.
Thus, ADB forecasts inflation rate decrease in Georgia from 2022 through 2023 mainly due to further increase in refinancing rate and fiscal contractions.
As ADB explains, weaker currencies will reinforce inflationary pressures, and large depreciation may also create liquidity risks in economies with substantial foreign currency-denominated debt, such as Georgia.
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