There is a perfect coincidence, we have quite high economic growth along with low inflation, - Ekaterine Mikabadze, the Vice Governor of the National Bank of Georgia, said on Monday.
According to her, domestic inflation had remained below the target rate of 0.3% as of October, which she said was the result of the monetary policy implemented by the NBG. Mikabadze added, that it was important that the total potential of the economy was increased.
"Price stability is our main mandate at the NBG and serves as the foundation for long-term economic growth. The rate of price growth has slowed since early 2023, and inflation has consistently stayed below the three percent target since March. It is essential to note the low inflation of domestic products and slow growth of prices in the services sector largely contribute to inflation. This indicates a stabilisation of long-term inflationary expectations”, she added.
Mikabadze also pointed out Georgia was witnessing a “remarkable economic performance”, with a reported growth rate of 9.8% over the first nine months of the year.
"As for other fundamental macroeconomic factors, there is a perfect coincidence, we have quite high economic growth along with low inflation. As of 9 months, the economic growth totals to 9.8%, which is driven by a surge in combined domestic demand, it has surpassed previous forecasts and reflected the “overall strength” of the country’s economic activity. It is also important that the total potential of the economy has increased", said Ekaterine Mikabadze.
