Georgian experts forecast the inflation rate in Georgia to begin to “decline significantly” from March to April, Prime Minister said on February 23, adding a reduction in inflation was already observed in the final months of 2021.
Garibashvili elaborated on causes of the high inflation rate in the country, naming the global pandemic as the main reason for the increase in prices, and highlighting the average inflation rate for the past year was 9.6%.
“In recent months, there has been a slowdown in the growth rate of prices compared to the previous month, which is very optimistic and looks very good,” he said.
The government head also cited the Food and Agriculture Organization in pointing out a 23.5% worldwide increase in food prices as of December 2021.
Garibashvili also mentioned past data in Georgia, pointing out the annual inflation rate in July 2006 was 14.5% and in 2011 the figure stood at 14.3% – adding the statistics showed the 2021 rate was not all-time high.
The Consumer Price Index in Georgia increased by 1.1% in January compared to the previous month, while the annual inflation rate stood at 13.9%.
The Georgian official also noted the country had a “serious growth” in the economy with a 10.6% increase, calling it an “unprecedented” not only in the region but in Europe as well, saying the figure placed the country “second in Europe after Ireland.”
The government head also pointed out the recent change in pension-backed loan payments, the upper limit of which had been set at 26%, referencing the “80-100%” rate for the loans under the previous government in contrast.
Garibashvili also talked about the increased budget of the Health Ministry, pointing out in 2012 it amounted to 450 million GEL ($146 million or EUR 130 million), while a decade later it totaled 2.4 billion GEL ($776 million or EUR 631 million).
He also made comparisons between 38% of the population covered by the health insurance program in 2012 and the percentage rising to 90% this year. (Agenda/Business World Magazine)
