Koba Gvenetadze, the Governor of the National Bank of Georgia, participated in an event organized by the ISET Research Institute - "War in Ukraine: Challenges, Risks and Consequences for the Georgian Economy". The meeting was attended by top officials of Georgia, Ukraine and the international community.

 

Koba Gvenetadze spoke in a panel discussion about the risks in the region and the macroeconomic stability policy pursued in response to these risks. He pinpointed the resilience of Georgia's financial sector, noting that the considerable resilience of the sector in the wake of the pandemic and the onset of the war in Ukraine was a result of the NBG reforms and regulations. The Governor of the National Bank of Georgia also discussed the rise in prices and inflation in international markets as a result of Russia's military action in Ukraine.

 

"The upward pressure on prices in international commodity markets is worth considering, as Russia and Ukraine are suppliers of a number of raw materials to the world market, and the delay in this supply makes certain products more expensive on a global scale. These developments have intensified inflationary pressures, pushing us to pursue a stringent monetary policy to address risks of rising inflation expectations. The current situation has prompted the economic growth forecast to moderate: while we expected 5% economic growth in early February, we now anticipate it around a 3-4% rate. This underscores the importance of diversified economy for long-term and sustainable economic development. We also need to consider the high level of uncertainty over the development of events, which puts into question the forecasts made today, "- said Koba Gvenetadze.