NBG stated the increased inflation remains one of the main recent issues for Georgia as well. Annual inflation slightly declined to 12.5 per cent in November. Even though the recent inflation figure is mainly driven by temporary exogenous factors, it is high nevertheless.

"The gradual reduction of inflation, along with the fading-out of one-off factors, will be facilitated by planned fiscal consolidation and tighter monetary policy. A precondition for the future reduction of the policy rate will be significantly reduced inflation and inflationary expectations.

In the wake of the global economic recovery, external demand continues to grow. In January-October exports increased by about 25 per cent annually, while the increase compared to the same period in 2019 is 11 per cent. Revenues from international travellers have almost doubled annually based on ten months data, although the decline from the 2019 level is still significant (65 per cent). Imports have also increased, against the backdrop of higher domestic demand: in January-October it grew by 22 per cent year-on-year, whereas compared to 2019 the growth is about 3 per cent,” NBG stated.