About Civil.ge
Eng | Geo | Rus
Last updated: 22:11 - 13 Feb.'16
RSS
Mobile
Twitter
Facebook
Central Bank Chief Reports on Inflation
Civil Georgia, Tbilisi / 10 May.'07 / 14:31

The president of the National Bank of Georgia (NBG) told lawmakers on May 10 that inflation was 8.8% in 2006, 5.6% of which had been triggered by external reasons, including Russia’s economic embargo.

“Inflation in Georgia was not triggered by internal monetary reasons. The major reason behind inflation was external pressures,” Gotsiridze said while presenting the NGB’s annual report to Parliament.

He said that 5.6% of the inflation rate was triggered by “reasons beyond the National Bank’s competences.”

“For example, the price of bread increased by 11% which made up 0.2% in the total inflation rate; it was triggered by Russia’s embargo… The price of natural gas increased by 34.9% which made up 0.3% in the total inflation rate. The price of sugar increased by 15% and its share in the total inflation rate was 0.3%; it was triggered by an increase in the sugar price on world markets… The price of eggs went up by 22% last year because of bird flu; you know that we had to ban the import of poultry from neighboring countries and a large number of poultry was culled in western Georgia,” Gotsiridze said.

He said that the price of electricity last year increased by 58.9%, constituting the largest share in the total inflation rate - 1.6%.

“It was also triggered by Russia’s decision to increase the price of gas,” Gotsiridze added.

He said that external pressure on the Georgian economy had been overcome thanks to foreign investments.

“Large amounts of foreign currency has been transferred to Georgia. Money transferred from abroad by private persons to Georgia totaled up to USD 600 million and foreign direct investment in Georgia reached USD 1.2 billion last year,” Gotsiridze said. Foreign direct investment was USD 1.14 billion in 2006, according to the Georgian Department of Statistics.

Latest News
13 Feb.'16 22:11
Ukrainian President, Georgian PM Meet in Munich
Ukrainian President’s office said it was agreed “to intensify economic cooperation”.
13 Feb.'16 16:27
Georgian PM Meets ICC Prosecutor in Munich
The Georgian side reiterated to cooperate with ICC Prosecutor in her probe of 2008 war.
12 Feb.'16 19:22
Georgian, Iranian Foreign Ministers Meet in Munich
Tbilisi, Tehran reaffirm “readiness to further deepen cooperation,” the Georgian MFA said.
12 Feb.'16 17:20
Four NATO Ships Make Port Call in Batumi
Two Turkish, as well as Spanish and Romanian ships make port call in Batumi on February 12-15.
12 Feb.'16 01:19
Govt Mulls GEL 400m Budget Cut Amid Planned Corporate Income Tax Reform
Govt proposes to introduce zero corporate income tax on undistributed profits from July.
11 Feb.'16 20:45
President Names Candidate for C.Bank Board
If approved by the Parliament, Koba Gvenetadze will replace Giorgi Kadagidze in central bank’s board.
11 Feb.'16 18:58
NATO, Georgian Defense Ministers Meet in Brussels
Joint NATO-Georgia training center will start tactical training of Georgian officers in May.
11 Feb.'16 12:53
PM Vows Holding of 2016 Elections at ‘Highest Standards’
“This is vitally important for us that all the components of democratic elections be observed,” he said.
10 Feb.'16 23:40
Politicians Comment on U.S. Intelligence Annual Report
U.S. diplomat said the report was “unfortunately a little bit misconstrued here in Georgia.”
10 Feb.'16 12:52
Georgia in U.S. Intelligence Annual Report
Frustration of elites with pace of Western integration may slow Georgia’s Euro-Atlantic efforts, it says.

About Civil Georgia
Civil.Ge © 2001-2016, Daily News Online
Registered office: 2 Dolidze Str, 4-th Floor.
54