24.Jun .2021 16:00

“Global Inflationary Pressures Will Continue to Affect Inflation in Georgia” – WB

“Global Inflationary Pressures Will Continue to Affect Inflation in Georgia” – WB
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According to Sebastian Molineus, the World Bank Regional Director for the South Caucasus, the global inflationary pressures related to the economic recovery will continue to affect inflation in Georgia.

Sebastian Molineus also spoke about ways to tackle inflation at a presentation by the NBG and the World Bank on the World Bank's 2021 Global Economic Outlook, noting that accelerating economic recovery in the world and Georgia is promising, but the recovery process is still risky.

"Strict pandemic control is necessary for sustainable recovery, which requires faster vaccination. Covid-19 impact mitigation measures should be phased out. Re-strengthening structural reforms in the near future (e.g., state-owned enterprise reform, competition, the judiciary, etc.), improving human capital, promoting digitalization, and understanding the risks associated with climate change may increase productivity with a significant growth pace. Global inflationary pressures related to economic recovery will continue to affect inflation in Georgia. Because this trend is global, the government has little leverage to respond. Nevertheless, the continuation of the de-dollarization process can help reduce exchange rate fluctuations, while improving social protection systems can mitigate the impact on vulnerable groups in society," said the World Bank Regional Director for the South Caucasus.