The National Bank of Georgia provided an update on discussions with the International Monetary Fund on Georgia’s monetary and fiscal policies, macroeconomic conditions and IMF cooperation. At a meeting during the IMF and World Bank annual meetings in Thailand, Governor Natia Turnava and Finance Minister Lasha Khutsishvili highlighted moderate underlying inflation pressures and a marked improvement in the country’s external position and reserve adequacy. Annual inflation stood at 5.6% in September 2026, while core inflation was 3.5% and services inflation was 3.7%. The deviation from the inflation target was attributed largely to supply shocks, particularly higher energy prices linked to geopolitical tensions in the Middle East. Turnava said the central bank’s priority was to prevent these shocks from spreading through inflation expectations and second round effects, while the medium term outlook remained exposed to geopolitical and commodity price risks. International reserves reached 128.7% of the IMF’s Assessing Reserve Adequacy benchmark following a significant improvement in 2026. Reserve accumulation was supported by Georgia’s economic resilience, a stronger external balance and continued financial inflows, and has become a factor in international rating agencies’ assessments of the country.
National Bank of Georgia reviews inflation risks and improved reserve adequacy with IMF
The National Bank of Georgia reviewed inflation and reserve developments with the IMF, reporting September 2026 annual inflation of 5.6% but lower core and services inflation of 3.5% and 3.7%, respectively. It attributed the target overshoot largely to energy price shocks and said reserve adequacy had improved to 128.7% of the IMF benchmark.