Organized by the National Bank of Georgia, the international conference Global Economic Trends: Impact on the Region was held in Tbilisi. The conference brought together economists, financiers, industry experts, representatives from the non-governmental sector, international organizations, and academia. Natia Turnava, Acting Governor of the National Bank of Georgia, addressed the participants, emphasizing the importance of understanding the complexity of the global economic situation and reacting appropriately to current processes. She highlighted the extraordinary challenges faced by central banks in recent years due to successive shocks, noting that these shocks have been inflationary.

As noted by Natia Turnava, the COVID-19 pandemic, geopolitical tensions, and globally tightened financial conditions in developing countries, including Georgia, have presented policymakers with a significant dilemma. Structurally vulnerable nations with high dollarization rates have become increasingly susceptible to these shocks.

"It is noteworthy that the NBG has effectively addressed inflationary challenges, maintaining price stability and ensuring well-managed long-term inflation expectations. In Georgia, we have also witnessed a decline in inflation since the beginning of 2023, with rates significantly lower than our 3% target. In February, we recorded a minimal overall inflation rate of 0.3%. During inflationary shocks, we proactively tightened monetary policy ahead of many developed economies' central banks, enabling us to mitigate inflationary pressure and reduce expectations. The key factor in curbing inflation was the timely and sufficient tightening of our policy. By responding appropriately and promptly to global challenges, we have strengthened Georgia's economic resilience to shocks," stated Natia Turnava.

Speaking at the conference, David Vavra, international consultant for the NBG and founder of OGResearch, reviewed global economic trends and their impact. He highlighted Georgia's achievements in recent years, including the creation of a significant volume of foreign currency reserves and the stabilization of government finances. Vavra also noted the favorable situation in macroeconomic management and expressed confidence that this trend would continue.

Shalva Mkhatrishvili, head of the Macroeconomics and Statistics Department at the NBG, delivered an extensive presentation on the policy responses to global trends and their outcomes. The National Bank of Georgia's review addressed economic challenges in the region, focusing on global issues.

The conference also saw participation from representatives of TBC Capital and Galt & Taggart. Tornike Mchedlishvili, Vice President of TBC Capital, presented on the expectations of international interest rates, reviewed the expected impact of interest rates on Georgia.

Kakha Samkurashvili, head of sectoral research of Galt & Taggart, introduced the overview of global commodity markets to the participants of the conference.