30.Dec .2020 11:15

“Pressure on the national currency will continue without the resumption of tourism in 2021"

“Pressure on the national currency will continue without the resumption of tourism in 2021"
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"2020 was quite difficult for the Georgian economy. The country owes more than ever before,” Eva Bochorishvili, Head of Research Department at Galt & Taggart told TV-Program Business Morning.

However, Bochorishvili notes that 2021 comes with its challenges.

"Pressure on the national currency will continue without the resumption of tourism in 2021, and the continuation of the NBG interventions in this regard is important.

Including the given pressure, we have changed the inflation forecast and in 2021 inflation will be higher than targeted 4%, in such conditions it is important to continue interventions, and we do not rule out that the National Bank will have to tighten monetary policy. The NBG challenge in 2021 will be to keep inflation within targets.

An important challenge for the Georgian economy will be to reduce dependence on tourism and tap into the potential of other sectors.

If tourism is not restored, we will have 3.7% economic growth in 2021. And if it recovers within 50%, then economic growth may be more within 5.5%," Bochorishvili said.