September 2018 GDP Forecast | Georgia's growth projections are strong, but the Turkish lira crisis may dampen the buoyant forecasts in the second half of the year
24 September 2018

Recently, Geostat released the preliminary estimate of real GDP growth for the second quarter (April-June) of 2018, which now stands at 6.0%. This is only 0.1 percentage points above the recent ISET-PI forecast. As a result, real GDP growth for the first seven months of 2018 reached 5.5%.

Georgia's New European Modus Operandi
04 March 2017

The above quote seems to fit the state of affairs in the European Union fairly well, as the EU’s crisis is continuing, getting deeper, and engulfing more actors than when it started. To name a few well-known events and stats: Greece probably had the first meaningful kick-off in the chain of developments when it faced threats to stability in its own financial system at the end of 2009. At that time, an unreported estimated deficit jumped from 7% of GDP to the first 13%, and then stabilized at 15% as the "new normal."

How to De-Dollarize in a Smart Way: Lessons from the Georgian and Foreign Experiences
04 February 2017

Unofficial (partial) dollarization describes a situation when a foreign currency is used alongside the domestic currency for transactions purposes and as a store value. High partial dollarization is not good for a country, as it ties the hands of its Central Bank when it wants to use monetary policy. In a highly dollarized economy, national currency depreciation can even lead to financial instability.

The Foreign Exchange Rate’s Impact on the Balance of Payments and the Financial Sector
01 December 2016

Furthermore, high dollarization makes depreciation a dangerous process for the financial sector, as many people with loans or debts in US dollars are unable to pay. In addition, high and persistent dollarization constrains the effectiveness of the monetary policy, as the transmission of the monetary policy to the market interest rates and real variables are rather limited.

October 2016 GDP Forecast | Expansionary monetary policy stimulates economic growth, while negative external shocks continue to impede economic activities
20 October 2016

Based on the latest data, we expect annual growth in 2016 to be 3.3%. This is just 0.1% below the recently released annual economic growth projections of the International Monetary Fund (IMF) and 0.2% lower than the annual forecast of the National Bank of Georgia.