The challenges of Georgia and the region, the effects of the Russia-Ukraine war and the global economy – these issues were discussed as Koba Gvenetadze, Governor of the National Bank of Georgia, Jihad Azour, Director of the IMF’s the Middle East and Central Asia Department, met with the students.

At the opening of the meeting, Koba Gvenetadze noted that the Russian invasion in Ukraine pushed global inflation up and decelerate global economic outlook. The sanctions imposed against Russia due to its aggression against Ukraine and supply side disruptions put upward pressure on international prices on food, energy and other commodities. Subsequently, global inflation pressure intensified and that factor led higher than expected inflation in Georgia as well. Without current geopolitical situation, inflation was expected to have a declining trend after March.

Koba Gvenetadze also noted that the NBG focuses on reducing inflation in such global high inflationary environment. The monetary policy is tightened and the real policy rate in Georgia is the highest among the countries of the region. With tight monetary policy stance, inflation will return to its target rate as external factors phase out.

Jihad Azour pinpointed the reforms implemented in the financial sector of Georgia, positively assessed the National Bank of Georgia and answered the students’ questions.