Tbilisi (GBC) - President of the National Bank of Georgia (NBG), Natia Turnava, presented the institution’s 2024 report to Parliament. The report reviews monetary, foreign exchange, and supervisory policies, as well as audited financial statements.
According to Turnava, inflation remained low and stable throughout the year, primarily due to domestic economic factors and consistent monetary policy.
“In 2024, inflation averaged 1.1 per cent, while core inflation—excluding volatile food, energy, and cigarette prices—stood at 1.6 per cent. This stable low inflation was mainly driven by domestic factors and the National Bank’s consistent policy, which kept long-term inflation expectations near the target,” she said.
Turnava emphasised that monetary policy played a key role in maintaining price stability.
“Alongside strong demand, the improved production capacity of the economy supported robust economic growth. Real GDP growth reached 9.4 per cent in 2024. Additionally, the GEL’s effective exchange rate remained relatively stable, further contributing to the low inflation environment. Fiscal policy also played a significant role,” she noted.
She highlighted the importance of supporting high-productivity sectors such as IT, innovation, logistics, transport, and construction.
“Despite high economic growth in recent years, price stability was preserved—an achievement rare among countries. This outcome reflects the effectiveness of a comprehensive economic policy framework, with monetary policy playing a central role in maintaining low inflation in 2024,” Turnava concluded.
