NBG: In January 2024, annual inflation amounted to 0.0%, and compared to December, prices increased by 0.3%

The National Bank of Georgia publishes the "Monthly Review" of February 2024.

As mentioned in the information released by the National Bank, the review covers the detailed analysis of the current situation and macroeconomic parameters in the banking and financial sectors of the country. The purpose of the publication is to promptly provide the public with a short-term (one-month) macroeconomic analysis of the country. The analysis presented in the report is based on the latest information available at this stage.

"Main trends: inflation

In January 2024, annual inflation was 0.0%, and compared to December, prices increased by 0.3%.

Low inflation, on the one hand, is caused by the downward trend of local inflation, which is the result of a strict monetary policy. The downward trend of food prices in the world continues to a large extent.

Real effective exchange rate of GEL maintains a strong position. This, together with the gradual reduction of external shocks, helps to keep the imported inflation at a low level. Inflation of locally produced products decreased to 2.7% in January.

banking sector

In December, excluding the effect of the exchange rate, loans increased by 17.1% annually. Based on the growth rates of foreign and national currency deposits, the dollarization of deposits in December 2023 increased by 0.2 pp compared to the previous month and amounted to 50.7%. In December, the dollarization of the total credit portfolio, compared to the previous month, decreased by 0.04 pp and equaled 45.2%

foreign sector

Import - in December, the import of goods decreased by 11.3% year-on-year. The decrease in the import of goods was mainly caused by the decrease in the import of intermediate goods. The import of consumer and investment goods decreased moderately.

Export - in December, the registered export of goods decreased by 7.5% year-on-year. The decrease in the export of goods was largely caused by the decrease in the export of intermediate goods, while the export of consumer goods increased significantly.

In December, compared to the previous month, official international reserves decreased by USD 112.1 million, and the total volume of reserves amounted to USD 5.0 billion.

The publication can be viewed on the official website of the National Bank in the "Publications" section," the information says.