Daily News August 8, 2022	Days:  04 05 08 09 10

politics

GEORGIAN PREMIER: AS A WAY TO RESTORE TERRITORIAL INTEGRITY, WE HAVE CHOSEN A PEACEFUL, REASONABLE POLICY

“As a way to restore the territorial integrity and unification of the country, we have chosen a peaceful, reasonable policy”, declared Georgia’s Prime Minister Irakli Garibashvili. We “believe that we will definitely achieve the goal – Georgia will be united”, he posted on the social media in connection with the 14^th anniversary of the Russia-Georgia war.

economics

NBG FORECAST: IN 2022, CURRENT ACCOUNT DEFICIT WILL MAKE UP ABOUT 8% OF GEORGIA’S GDP

Against the background of globally increased commodity prices, growth of import-export will remain at a high level, and Georgia’s current account deficit in 2022 will amount to about 8% of the country’s GDP, National Bank of Georgia (NBG) forecasts.

To compare, the deficit-to-GDP ratio in the pre-pandemic 2019 made up 5.8%.




NBG: CURRENT ACCOUNT DEFICIT HAS IMPROVED SHARPLY, WHILE PACE OF LENDING GROWTH EXCEEDED THE EXPECTED

National Bank of Georgia (NBG) reported that contrary to the expectations, current account deficit has improved sharply, while pace of loans’ growth in Georgia exceeded the expected.

As a result, NBG raised its forecast of Georgia’s real GDP growth in 2022 to 9%.




NBG: FINANCIAL MARKET PARTICIPANTS’ EXPECTATIONS REGARDING GEORGIA’S ECONOMIC GROWTH IN 2022 CHANGED SIGNIFICANTLY

Results of the latest survey show that expectations of financial market participants regarding economic growth in Georgia in 2022 have changed significantly, National Bank of Georgia (NBG) said.

In particular, median forecast of the growth in 2022 has been increased by 5.5 percentage points (pp) to 9.5%, while average forecast – by 4.2 pp to 9.1%.




NBG: FINANCIAL MARKET PARTICIPANTS’ FORECASTS REGARDING GEORGIA’S INFLATION HAVE BEEN RAISED

Results of the latest survey show that both average and median forecasts of financial market participants regarding annual consumer price inflation in Georgia in 2022 have been increased, National Bank of Georgia (NBG) said.

In particular, the median indicator of inflation expectations has increased by 1.1 percentage points (pp) compared to the previous survey and made up 11.1%, while the average inflation forecast has increased by 1.3 pp to 11%.




NBG: INFLATION WILL RETURN TO THE TARGET IN SECOND HALF OF THE NEXT YEAR

Current baseline forecast of National Bank of Georgia (NBG) sees that inflation in Georgia will average 11.8% in 2022, while will return to the target indicator (3%) in the second half of 2023.

NBG attributed growth of inflation forecast mostly to the increased local aggregated demand.




IN Q1, PRODUCTIVITY IN GEORGIAN ECONOMY INCREASED BY 13.9% Y-O-Y

National Bank of Georgia (NBG) reported that productivity (real value added per employee) in Georgian economy increased in the 1^st quarter by 13.9% year-on-year. Data for the 2^nd quarter has not been published yet.




GEORGIA’S NATIONAL PLAN OF WASTE MANAGEMENT FOR 2022-2026 IS APPROVED

Georgia’s national strategy of waste management (2016-2030) has been amended and a new action plan for 2022-2026 has been approved, reported Georgian Ministry of Environmental Protection and Agriculture. The government has made this at the meeting today.