Natia Turnava, Acting Governor of the National Bank of Georgia, participated in a conference organized by the Georgian Business Association. During a panel discussion titled Overview of the Georgian economy: macroeconomic and sectoral outlook, Turnava highlighted the country's robust macroeconomic environment and increased economic potential, with a focus on the role of investments in driving economic growth.

Regarding inflation, Turnava noted: "Inflation has consistently remained below the target rate since March of last year, with the past five months seeing it dip below 1%. This trend suggests that economic growth has been achieved through improvements in productivity. Georgia's overall economic potential has also increased, characterized by substantial advancements in productive sectors. This growth, coupled with effective inflation control, has been a positive development for the economy.”

Turnava suggested that the pace of monetary policy easing could now be more dynamic, stating, "The main challenge lies in maintaining the necessary flexibility of monetary policy. Initially, the National Bank of Georgia began tightening monetary policy more rapidly than other countries. As a result, we are now in a position where we are easing monetary policy and reducing interest rates at a faster pace than others, albeit with caution. Considering the high economic growth, which is largely driven by productivity, and the low inflation rate, there is room for a more assertive approach to easing monetary policy. However, our task is to remain cautious and conservative, bearing in mind all potential risks.”

In her address, Natia Turnava emphasized the tangible outcomes of the collaborative anti-inflationary efforts between the NBG, the Government's economic team, relevant ministries, and their coordinated measures.

"The reduction in inflation and the anti-inflation policy that has been implemented serve as a prime example of how coordination in economic policy can yield positive results. The government's anti-inflationary measures, such as enhancing competition in various sectors, combined with our prudent monetary policy tightening, have produced a notably favorable outcome through unified action," said Turnava.

Natia Turnava thanked the Georgian Business Association, the financial sector, and commercial banks for their efforts and cooperation.