09.Dec .2021 17:00

We Expect 10% Real GDP Growth In 2021 - Koba Gvenetadze

We Expect 10% Real GDP Growth In 2021 - Koba Gvenetadze
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"We expect 10% real GDP growth in 2021, and according to our forecast, the main driver of economic growth will be domestic demand," - the NBG President Koba Gvenetadze said at a meeting of the Budget and Finance Committee.

The President of the National Bank explains that high domestic demand will be due to fiscal stimulus and credit activity, on the other hand, it is a reflection of the accumulated and deferred consumption due to the pandemic. He notes, that with the partial recovery of tourism next year, real GDP will grow by 5%.

“We maintain monetary policy at a tighter level to eliminate additional inflationary pressure. However, if the factors driving up inflation expectations are still identified, it may be necessary to tighten monetary policy further or maintain the current tough rate for a long time.

In the wake of the current condition, inflation will start to decline from the next year, and we will gradually reduce the monetary policy rate after a significant decline in inflation," Koba Gvenetadze said.