29/11/2022
12:11
Economic
As TBC Capital estimates, the inflation in the country is decreasing, and moreover, the deflation is likely to be observed in November of this year compared to October.
"The recent decline in international commodity prices and the baseline scenario of a normalization of economic growth next year suggest that consumer price inflation will be close to or below the 3% target in the next 12 months, or even sooner," - TBC Capital forecast. In addition, according to their expectations, in November, compared to October, the deflation will be recorded.
In terms of credit activity, October was determined again by a moderate indicator. Moreover, taking the annual inflation into account, the real growth of lending amounted to only 3%, which is clearly a low mark. We think that in the near future the gradual lowering of the interest rates in GEL and also next year, although relatively later, the beginning of the easing cycle by the American Federal Reserve System, will relatively improve the credit activity. Regarding the international interest rates of the US dollar, it is worth noting that long-term rates according to the market expectations, are already at their peak today, which is a positive development for both the GEL and further economic growth in Georgia," – the TBC Capital document says.
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One US dollar trades at GEL 2.6711
19/04/2024