Will Georgia keep inflation down?

Until recently the Georgian National Bank has been able to keep the inflation index down. The bank authorities are optimistic, and are still promising that the 2008 inflation index will not exceed 8%. However, independent experts are more skeptical, and think that by the end of the year the inflation rate will reach about 20%.

The experts are also not happy that the NBG is artificially keeping the GEL rate stable. In spite of this controversial approach, it is still too early to say how the situation will develop, as this greatly depends on the assistance country will receive from abroad, how efficiently the allotted sums will be utilized, how transparently this process is undertaken, how well monitored the expenditure is and many other factors.