National Bank of Georgia First Vice Governor Ekaterine Mikabadze emphasized credible macroeconomic policy and diversified sources of growth as responses to global trade uncertainty during a panel discussion at the Istanbul Economic Forum. Her remarks highlighted inflation targeting, exchange rate flexibility and adequate international reserves, alongside monetary policy decisions informed by alternative economic scenarios. Global developments affect Georgia through external demand and financing conditions as well as direct trade. Capital flows, exchange rates and investor sentiment provide additional transmission channels. Inflation targeting and a flexible exchange rate help the economy adjust to external shocks, while international reserves provide an additional buffer. Transparent communication of possible scenarios helps the public and financial markets understand how the central bank would respond to changing conditions, supporting stable inflation expectations and policy effectiveness. Regional agreements and improved transport links can expand market access and reduce trading costs, but cannot replace a predictable multilateral trading system based on common rules. Shifts in trade flows and supply chains can create opportunities for countries with reliable infrastructure, efficient logistics and credible macroeconomic policies. Growth cannot rely on a single market, sector or policy instrument. External diversification, stronger domestic productive capacity and credible macroeconomic institutions are complementary responses to that challenge.
National Bank of Georgia stresses credible monetary policy and diversification amid trade uncertainty
At the Istanbul Economic Forum, National Bank of Georgia First Vice Governor Ekaterine Mikabadze highlighted monetary policy credibility and economic diversification as responses to trade uncertainty. Assessing and communicating alternative scenarios can support inflation expectations, while inflation targeting, exchange rate flexibility and adequate reserves help absorb external shocks. Broader export markets and stronger domestic productive capacity can reduce reliance on a single source of growth.